Morgan Stanley 2015 Annual Report Download - page 213

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As part of the Institutional Securities business segment’s securitization and related activities, the Company has provided, or
otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization
transactions sponsored by the Company (see Note 12).
Consolidated VIE Assets and Liabilities.
Consolidated VIE assets and liabilities are presented after intercompany eliminations and include assets financed on a non-
recourse basis:
At December 31, 2015 At December 31, 2014
VIE Assets VIE Liabilities VIE Assets VIE Liabilities
(dollars in millions)
Mortgage- and asset-backed securitizations ........... $ 375 $ 234 $ 563 $ 337
Managed real estate partnerships(1) ................. 38 1 288 4
Other structured financings ....................... 787 13 928 80
Credit-linked notes and Other ..................... 1,400 189 1,199 —
(1) During 2015 and 2014, the Company deconsolidated approximately $191 million and $1.6 billion, respectively, in net assets previously attributable to
nonredeemable noncontrolling interests that were primarily related to or associated with real estate funds sponsored by the Company.
In general, the Company’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE’s
assets recognized in its financial statements, net of losses absorbed by third-party holders of the VIE’s liabilities. At
December 31, 2015 and December 31, 2014, managed real estate partnerships reflected nonredeemable noncontrolling
interests in the consolidated financial statements of $37 million and $240 million, respectively. The Company also had
additional maximum exposure to losses of approximately $72 million and $105 million at December 31, 2015 and
December 31, 2014, respectively, primarily related to certain derivatives, commitments, guarantees and other forms of
involvement.
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