JP Morgan Chase 2013 Annual Report Download - page 164

Management’s discussion and analysis
170 JPMorgan Chase & Co./2013 Annual Report
The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2013 and 2012,
and average balances for the years ended December 31, 2013 and 2012. For additional information, see the Balance Sheet
Analysis on pages 75–76 and Note 21 on pages 306–308 of this Annual Report.
Sources of funds (excluding deposits)
2013 2012
As of or for the year ended December 31, Average
(in millions) 2013 2012
Commercial paper:
Wholesale funding $ 17,249 $ 15,589 $ 17,785 $ 14,302
Client cash management 40,599 39,778 35,932 36,478
Total commercial paper $ 57,848 $ 55,367 $ 53,717 $ 50,780
Other borrowed funds $ 27,994 $ 26,636 $ 30,449 $ 24,174
Securities loaned or sold under agreements to repurchase:
Securities sold under agreements to repurchase $ 155,808 $ 212,278 $ 207,106 $ 219,625
Securities loaned 19,509 23,125 26,068 20,763
Total securities loaned or sold under agreements to repurchase(a)(b)(c) $ 175,317 $ 235,403 $ 233,174 $ 240,388
Total senior notes $ 135,754 $ 130,297 $ 137,662 $ 141,936
Trust preferred securities 5,445 10,399 7,178 15,814
Subordinated debt 29,578 29,731 27,955 29,410
Structured notes 28,603 30,194 29,517 31,330
Total long-term unsecured funding $ 199,380 $ 200,621 $ 202,312 $ 218,490
Credit card securitization $ 26,580 $ 30,123 $ 27,834 $ 29,249
Other securitizations(d) 3,253 3,680 3,501 3,974
FHLB advances 61,876 42,045 55,487 20,415
Other long-term secured funding(e) 6,633 6,358 6,284 6,757
Total long-term secured funding $ 98,342 $ 82,206 $ 93,106 $ 60,395
Preferred stock(f) $ 11,158 $ 9,058 $ 10,960 $ 8,236
Common stockholders’ equity(f) $ 200,020 $ 195,011 $ 196,409 $ 184,352
(a) Excludes federal funds purchased.
(b) Excluded long-term structured repurchase agreements of $4.6 billion and $3.3 billion as of December 31, 2013 and 2012, respectively, and average
balance of $4.2 billion and $7.0 billion for the years ended December 31, 2013 and 2012, respectively.
(c) Excluded long-term securities loaned of $483 million and $457 million as of December 31, 2013 and 2012, respectively, and average balance of $414
million and $113 million for the years ended December 31, 2013 and 2012, respectively.
(d) Other securitizations includes securitizations of residential mortgages and student loans. The Firm’s wholesale businesses also securitize loans for client-
driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table.
(e) Includes long-term structured notes which are secured.
(f) For additional information on preferred stock and common stockholders’ equity see Capital Management on pages 160–167, Consolidated Statements of
Changes in Stockholders’ Equity on page 187, Note 22 on page 309 and Note 23 on page 310 of this Annual Report.
Short-term funding
A significant portion of the Firm’s total commercial paper
liabilities, approximately 70% as of December 31, 2013,
are not sourced from wholesale funding markets, but were
originated from deposits that customers choose to sweep
into commercial paper liabilities as a cash management
program offered to customers of the Firm.
The Firm’s sources of short-term secured funding primarily
consist of securities loaned or sold under agreements to
repurchase. Securities loaned or sold under agreements to
repurchase are secured predominantly by high-quality
securities collateral, including government-issued debt,
agency debt and agency MBS, and constitute a significant
portion of the federal funds purchased and securities
loaned or sold under purchase agreements. The amounts of
securities loaned or sold under agreements to repurchase at
December 31, 2013, decreased predominantly due to a
change in the mix of the Firm’s funding sources. The
balances associated with securities loaned or sold under
agreements to repurchase fluctuate over time due to
customers’ investment and financing activities; the Firm’s
demand for financing; the ongoing management of the mix
of the Firm’s liabilities, including its secured and unsecured
financing (for both the investment and market-making
portfolios); and other market and portfolio factors.