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GoldmanSachs 2009 Annual Report
102
Notes to Consolidated Financial Statements
NOTE 3
Financial Instruments
Fair Value of Financial Instruments
The following table sets forth the  rm’s trading assets, at fair value, including those pledged as collateral, and trading liabilities,
at fair value. At any point in time, the  rm may use cash instruments as well as derivatives to manage a long or short risk position.
As of
December2009 November2008
(inmillions) Assets Liabilities Assets Liabilities
Commercial paper, certi cates of deposit, time deposits and
other money market instruments $ 9,111 (1) $ – $ 8,662
(1) $ –
Government and U.S. federal agency obligations 117,194 44,825 69,653 37,000
Mortgage and other asset-backed loans and securities 14,277 103 22,393 340
Bank loans and bridge loans 19,345 1,541 (4) 21,839 3,108
(4)
Corporate debt securities and other debt obligations 32,041 6,265 27,879 5,711
Equities and convertible debentures 71,474 20,253 57,049 12,116
Physical commodities 3,707 23 513 2
Derivative contracts 75,253 (2) 56,009 (5) 130,337
(2) 117,695
(5)
Total $342,402 (3) $129,019 $338,325
(3) $175,972
(1) Includes $4.31billion and $4.40billion as of December2009 and November2008, respectively, of money market instruments held by William Street Funding
Corporation (Funding Corp.) to support the William Street credit extension program. See Note8 for further information regarding the William Street credit
extension program.
(2) Net of cash received pursuant to credit support agreements of $124.60billion and $137.16billion as of December2009 and November2008, respectively.
(3) Includes $3.86billion and $1.68billion as of December2009 and November2008, respectively, of securities held within the  rm’s insurance subsidiaries
which are accounted for as available-for-sale.
(4) Consists of the fair value of unfunded commitments to extend credit. The fair value of partially funded commitments is included in trading assets, at fair value.
(5) Net of cash paid pursuant to credit support agreements of $14.74billion and $34.01billion as of December2009 and November2008, respectively.
Fair Value Hierarchy
The  rm’s nancial assets at fair value classi ed within level3 of the fair value hierarchy are summarized below:
As of
December November
($ inmillions)
2009 2008
Total level3 assets $ 46,475 $ 66,190
Level3 assets for which the  rm bears economic exposure
(1) 43,348 59,574
Total assets 848,942 884,547
Total  nancial assets at fair value 573,788 595,234
Total level3 assets as a percentage of Total assets 5.5% 7.5%
Level3 assets for which the  rm bears economic exposure as a percentage of Total assets 5.1 6.7
Total level3 assets as a percentage of Total  nancial assets at fair value 8.1 11.1
Level3 assets for which the  rm bears economic exposure as a percentage of Total  nancial assets at fair value 7.6 10.0
(1) Excludes assets which are  nanced by nonrecourse debt, attributable to minority investors or attributable to employee interests in certain consolidated funds.