Morgan Stanley 2014 Annual Report Download - page 187

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Counterparty
and Cash
Collateral
Netting
Balance at
December 31,
2013
(dollars in millions)
Liabilities at Fair Value
Deposits ................................... $ — $ 185 $ — $ — $ 185
Commercial paper and other short-term
borrowings .............................. — 1,346 1 — 1,347
Trading liabilities:
U.S. government and agency securities:
U.S. Treasury securities .............. 15,963 — — — 15,963
U.S. agency securities ................ 2,593 116 — — 2,709
Total U.S. government and agency
securities .................... 18,556 116 — — 18,672
Other sovereign government obligations ..... 14,717 2,473 — — 17,190
Corporate and other debt:
State and municipal securities .......... — 15 — — 15
Corporate bonds .................... — 5,033 22 — 5,055
Collateralized debt and loan
obligations ....................... — 3 — — 3
Unfunded lending commitments ........ — 127 2 — 129
Other debt ......................... — 1,144 48 — 1,192
Total corporate and other debt ..... — 6,322 72 — 6,394
Corporate equities(1) ..................... 27,983 513 8 — 28,504
Derivative and other contracts:
Interest rate contracts ................ 675 504,292 2,362 — 507,329
Credit contracts ..................... — 40,391 2,235 — 42,626
Foreign exchange contracts ............ 23 61,925 111 — 62,059
Equity contracts ..................... 1,033 57,797 2,065 — 60,895
Commodity contracts ................ 2,637 8,749 1,500 — 12,886
Other ............................. — 72 4 — 76
Netting(2) ......................... (3,836) (606,878) (4,931) (36,465) (652,110)
Total derivative and other
contracts .................... 532 66,348 3,346 (36,465) 33,761
Total trading liabilities ............... 61,788 75,772 3,426 (36,465) 104,521
Obligation to return securities received as
collateral ................................ 24,549 19 — — 24,568
Securities sold under agreements to repurchase .... — 407 154 — 561
Other secured financings ...................... — 4,928 278 — 5,206
Long-term borrowings ....................... — 33,750 1,887 — 35,637
Total liabilities measured at fair value ........... $86,337 $ 116,407 $ 5,746 $(36,465) $ 172,025
(1) The Company holds or sells short for trading purposes equity securities issued by entities in diverse industries and of varying size.
(2) For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash
collateral netting are included in the column titled “Counterparty and Cash Collateral Netting.” For contracts with the same counterparty,
counterparty netting among positions classified within the same level is included within that level. For further information on derivative
instruments and hedging activities, see Note 12.
(3) Amount represents MSRs accounted for at fair value.
Transfers Between Level 1 and Level 2 During 2013.
For assets and liabilities that were transferred between Level 1 and Level 2 during the period, fair values are
ascribed as if the assets or liabilities had been transferred as of the beginning of the period.
In 2013, there were no material transfers between Level 1 and Level 2.
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