Goldman Sachs 2009 Annual Report Download - page 120

Goldman Sachs 2009 Annual Report
118
Notes to Consolidated Financial Statements
Collateralized Transactions
The  rm receives  nancial instruments as collateral,
primarily in connection with resale agreements, securities
borrowed, derivative transactions and customer margin
loans. Such  nancial instruments may include obligations
of the U.S. government, federal agencies, sovereigns and
corporations, as well as equities and convertibles.
In many cases, the  rm is permitted to deliver or repledge
these  nancial instruments in connection with entering
into repurchase agreements, securities lending agreements
and other secured  nancings, collateralizing derivative
transactions and meeting  rm or customer settlement
requirements. As of December2009 and November2008,
the fair value of  nancial instruments received as collateral
by the  rm that it was permitted to deliver or repledge
was $561.77billion and $578.72billion, respectively, of
which the  rm delivered or repledged $392.89billion and
$445.11billion, respectively.
The  rm also pledges assets that it owns to counterparties
who may or may not have the right to deliver or repledge
them. Trading assets pledged to counterparties that have the
right to deliver or repledge are included in “Trading assets,
at fair value” in the consolidated statements of  nancial
condition and were $31.49billion and $26.31billion as of
December2009 and November2008, respectively. Trading
assets, pledged in connection with repurchase agreements,
securities lending agreements and other secured  nancings
to counterparties that did not have the right to sell or
repledge are included in “Trading assets, at fair value” in
the consolidated statements of  nancial condition and were
$109.11billion and $80.85billion as of December2009 and
November2008, respectively. Other assets (primarily real
estate and cash) owned and pledged in connection with other
secured  nancings to counterparties that did not have the right
to sell or repledge were $7.93billion and $9.24billion as of
December2009 and November2008, respectively.
In addition to repurchase agreements and securities lending
agreements, the  rm obtains secured funding through the
use of other arrangements. Other secured  nancings include
arrangements that are nonrecourse, that is, only the subsidiary
that executed the arrangement or a subsidiary guaranteeing
the arrangement is obligated to repay the  nancing. Other
secured  nancings consist of liabilities related to the  rm’s
William Street credit extension program; consolidated VIEs;
collateralized central bank  nancings and other transfers of
 nancial assets that are accounted for as  nancings rather
than sales (primarily pledged bank loans and mortgage whole
loans); and other structured  nancing arrangements.
Other secured  nancings by maturity are set forth in the
tablebelow:
As of
December November
(inmillions) 2009 2008
Other secured  nancings (short-term)
(1) (2) $12,931 $21,225
Other secured  nancings (long-term):
2010 – 2,157
2011 3,832 4,578
2012 1,726 3,040
2013 1,518 1,377
2014 1,617 1,512
2015–thereafter 2,510 4,794
Total other secured  nancings (long-term)
(3) (4) 11,203 17,458
Total other secured  nancings
(5) (6) $24,134 $38,683
(1) As of December2009 and November2008, consists of U.S. dollar-
denominated  nancings of $6.47billion and $12.53billion, respectively,
with a weighted average interest rate of 3.44% and 2.98%, respectively,
and non-U.S. dollar-denominated  nancings of $6.46billion and
$8.70billion, respectively, with a weighted average interest rate of 1.57%
and 0.95%, respectively, after giving effect to hedging activities. The
weighted average interest rates as of December2009 and November2008
excluded  nancial instruments accounted for at fair value under the fair
valueoption.
(2) Includes other secured  nancings maturing within one year of the  nancial
statement date and other secured  nancings that are redeemable within
one year of the  nancial statement date at the option of the holder.
(3) As of December2009 and November2008, consists of U.S. dollar-
denominated  nancings of $7.28billion and $9.55billion, respectively, with
a weighted average interest rate of 1.83% and 4.62%, respectively, and
non-U.S. dollar-denominated  nancings of $3.92billion and $7.91billion,
respectively, with a weighted average interest rate of 2.30% and 4.39%,
respectively, after giving effect to hedging activities. The weighted average
interest rates as of December2009 and November2008 excluded  nancial
instruments accounted for at fair value under the fair value option.
(4) Secured long-term  nancings that are repayable prior to maturity at the
option of the  rm are re ected at their contractual maturity dates. Secured
long-term  nancings that are redeemable prior to maturity at the option of
the holder are re ected at the dates such options become exercisable.
(5) As of December2009 and November2008, $18.25billion and
$31.54billion, respectively, of these  nancings were collateralized
by trading assets and $5.88billion and $7.14billion, respectively, by
other assets (primarily real estate and cash). Other secured  nancings
include $10.63billion and $13.74billion of nonrecourse obligations as of
December2009 and November2008, respectively.
(6) As of December2009, other secured  nancings includes $9.51billion
related to transfers of  nancial assets accounted for as  nancings rather
than sales. Such  nancings were collateralized by  nancial assets included
in “Trading assets, at fair value” in the consolidated statement of  nancial
condition of $9.78billion as of December2009.