Goldman Sachs 2009 Annual Report Download - page 46

Loans and securities backed by residential real estate. We
securitize, underwrite and make markets in various types of
residential mortgages, including prime, Alt-A and subprime.
At any point in time, we may use cash instruments as well
as derivatives to manage our long or short risk position in
residential real estate. The following table sets forth the fair
value of our long positions in prime, Alt-A and subprime
mortgage cashinstruments:
Long Positions in Loans and Securities Backed by
Residential Real Estate
As of
December November
(inmillions) 2009 2008
Prime (1) $2,483 $1,494
Alt-A 1,761 1,845
Subprime (2) 2,460 1,906
Total (3) $6,704 $5,245
(1) Excludes U.S. government agency-issued collateralized mortgage
obligations of $6.33billion and $4.27billion as of December2009 and
November2008, respectively. Also excludes U.S. government agency-
issued mortgage pass-through certi cates.
(2) Includes $381million and $228million of CDOs backed by subprime
mortgages as of December2009 and November2008, respectively.
(3) Includes $1.88billion and $2.05billion of  nancial instruments (primarily
loans and investment-grade securities, the majority of which were issued
during 2006 and 2007) classi ed within level 3 of the fair value hierarchy as
of December2009 and November2008, respectively.
Loans and securities backed by commercial real estate. We
originate, securitize and syndicate  xed and  oating rate
commercial mortgages globally. At any point in time, we
may use cash instruments as well as derivatives to manage
our risk position in the commercial mortgage market. The
following table sets forth the fair value of our long positions
in loans and securities backed by commercial real estate
by geographic region. The decrease in loans and securities
backed by commercial real estate from November2008 to
December2009 was primarily due to sales and paydowns.
Long Positions in Loans and Securities Backed by
Commercial Real Estate by Geographic Region
As of
December November
(inmillions) 2009 2008
Americas (1) $5,157 $ 7,433
EMEA (2) 1,032 3,304
Asia 14 157
Total (3) $6,203 (4) $10,894 (5)
(1) Substantially all relates to the U.S.
(2) EMEA (Europe, Middle East and Africa).
(3) Includes $4.62billion and $9.34billion of  nancial instruments classi ed
within level 3 of the fair value hierarchy as of December2009 and
November2008, respectively.
(4) Comprised of loans of $4.70billion and commercial mortgage-backed
securities of $1.50billion as of December2009, of which $5.68billion was
 oating rate and $519million was  xed rate.
(5) Comprised of loans of $9.23billion and commercial mortgage-backed
securities of $1.66billion as of November2008, of which $9.78billion was
 oating rate and $1.11billion was  xed rate.
Leveraged Lending Capital Market Transactions. We arrange, extend and syndicate loans and commitments related to leveraged
lending capital market transactions globally. The following table sets forth the notional amount of our leveraged lending capital
market transactions by geographicregion:
Leveraged Lending Capital Market Transactions by Geographic Region
As of December 2009 As of November 2008
(inmillions) Funded Unfunded Total Funded Unfunded Total
Americas (1) $1,029 $1,120 $2,149 $3,036 $1,735 $4,771
EMEA 1,624 50 1,674 2,294 259 2,553
Asia 600 27 627 568 73 641
Total $3,253 $1,197 $4,450 (2) $5,898 $2,067 $7,965 (2)
(1) Substantially all relates to the U.S.
(2) Represents the notional amount. We account for these transactions at fair value and our exposure was $2.27billion and $5.53billion as of December2009 and
November2008, respectively.
Goldman Sachs 2009 Annual Report
44
Management’s Discussion and Analysis