Morgan Stanley 2015 Annual Report Download - page 87

Deposits.
At
December 31, 2015(1)
At
December 31, 2014(1)
(dollars in millions)
Savings and demand deposits ............................................. $ 153,346 $ 132,159
Time deposits(2) ....................................................... 2,688 1,385
Total(3) .......................................................... $ 156,034 $ 133,544
(1) Total deposits subject to the FDIC insurance at December 31, 2015 and December 31, 2014 were $113 billion and $99 billion, respectively.
(2) Certain time deposit accounts are carried at fair value under the fair value option (see Note 3 to the consolidated financial statements in Item 8).
(3) The Company’s deposits were primarily held in the U.S.
Short-Term Borrowings.
The Company’s unsecured Short-term borrowings may consist of bank loans, bank notes, commercial paper and structured
notes with maturities of 12 months or less at issuance. At December 31, 2015 and December 31, 2014, the Company had
approximately $2,173 million and $2,261 million, respectively, in Short-term borrowings.
Long-Term Borrowings.
The Company believes that accessing debt investors through multiple distribution channels helps provide consistent access to
the unsecured markets. In addition, the issuance of long-term debt allows the Company to reduce reliance on short-term
credit sensitive instruments. Long-term borrowings are generally managed to achieve staggered maturities, thereby
mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients
across regions, currencies and product types. Availability and cost of financing to the Company can vary depending on
market conditions, the volume of certain trading and lending activities, its credit ratings and the overall availability of credit.
The Company may engage in various transactions in the credit markets (including, for example, debt retirements) that it
believes are in the best interests of the Company and its investors.
Long-term Borrowings by Maturity Profile.
Parent Subsidiaries Total
(dollars in millions)
Due in 2016 .................................................... $ 18,110 $ 4,286 $ 22,396
Due in 2017 .................................................... 21,161 1,105 22,266
Due in 2018 .................................................... 17,099 838 17,937
Due in 2019 .................................................... 17,959 609 18,568
Due in 2020 .................................................... 16,002 1,003 17,005
Thereafter ..................................................... 53,759 1,837 55,596
Total ...................................................... $ 144,090 $ 9,678 $ 153,768
During 2015, the Company issued notes with a principal amount of approximately $34.2 billion. In connection with these
note issuances, the Company generally enters into certain transactions to obtain floating interest rates. The weighted average
maturity of the Company’s long-term borrowings, based upon stated maturity dates, was approximately 6.1 years at
December 31, 2015. During 2015, approximately $27.3 billion in aggregate long-term borrowings matured or were retired.
Subsequent to December 31, 2015 and through February 19, 2016, long-term borrowings increased by approximately
$5.2 billion, net of maturities and repayments. This amount includes the issuance of $5.5 billion of senior debt on January 27,
2016 and $400 million of senior debt on February 17, 2016. For a further discussion of the Company’s long-term borrowings,
including the amount of senior debt outstanding at December 31, 2015, see Note 11 to the consolidated financial statements
in Item 8.
During 2015, Morgan Stanley Capital Trusts VI and VII redeemed all of their issued and outstanding 6.60% Capital
Securities, respectively, and the Company concurrently redeemed the related underlying junior subordinated debentures.
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