Morgan Stanley 2015 Annual Report Download - page 169

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Impact on Earnings of Transactions Under the Fair Value Option Election.
Trading
Revenues
Interest
Income
(Expense)
Gains (Losses)
Included in
Net Revenues
(dollars in millions)
2015
Securities purchased under agreements to resell .......................... $ (6) $ 10 $ 4
Short-term borrowings(1) ............................................ 63 — 63
Securities sold under agreements to repurchase ........................... 13 (6) 7
Long-term borrowings(1) ............................................ 2,404 (528) 1,876
2014
Securities purchased under agreements to resell .......................... $ (4) $ 9 $ 5
Short-term borrowings(1) ............................................ (136) 1 (135)
Securities sold under agreements to repurchase ........................... (5) (6) (11)
Long-term borrowings(1) ............................................ 1,867 (638) 1,229
2013
Securities purchased under agreements to resell .......................... $ (1) $ 6 $ 5
Deposits ......................................................... 52 (60) (8)
Short-term borrowings(1) ............................................ 181 (8) 173
Securities sold under agreements to repurchase ........................... (3) (6) (9)
Long-term borrowings(1) ............................................ 664 (971) (307)
(1) Of the total gains (losses) recorded in Trading revenues for short-term and long-term borrowings for 2015, 2014 and 2013, $618 million, $651 million and
$(681) million, respectively, are attributable to changes in the credit quality of the Company and other credit factors, and the respective remainder is attributable
to changes in foreign currency rates or interest rates or movements in the reference price or index for structured notes before the impact of related hedges.
In addition to the amounts in the above table, as discussed in Note 2, instruments within Trading assets or Trading liabilities
are measured at fair value. The amounts in the above table are included within Net revenues and do not reflect gains or losses
on related hedging instruments, if any.
Short-Term and Long-Term Borrowings Measured at Fair Value on a Recurring Basis.
Business Unit Responsible for Risk Management At December 31, 2015 At December 31, 2014
(dollars in millions)
Equity ............................................................... $ 17,789 $ 17,253
Interest rates .......................................................... 14,255 13,545
Credit and foreign exchange ............................................. 2,266 2,105
Commodities ......................................................... 383 636
Total .............................................................. $ 34,693 $ 33,539
Gains (Losses) due to Changes in Instrument-Specific Credit Risk.
2015 2014 2013
(dollars in millions)
Short-term and long-term borrowings(1) ...................................... $ 618 $ 651 $ (681)
Loans and other debt(2) ................................................... (193) 179 137
Lending commitments(3) .................................................. 12 30 255
(1) The change in the fair value of short-term and long-term borrowings (primarily structured notes) includes an adjustment to reflect the change in credit quality of
the Company based upon observations of its secondary bond market spreads and changes in other credit factors.
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