Morgan Stanley 2015 Annual Report Download - page 82

At December 31, 2014
Institutional
Securities
Wealth
Management
Investment
Management Total
(dollars in millions)
Assets
Cash and cash equivalents ............................. $ 23,161 $ 23,363 $ 460 $ 46,984
Cash deposited with clearing organizations or segregated
under federal and other regulations or requirements ....... 37,841 2,766 — 40,607
Trading assets ...................................... 252,021 1,300 3,480 256,801
Investment securities ................................. 11,999 57,317 — 69,316
Securities received as collateral ......................... 21,316 — — 21,316
Securities purchased under agreements to resell ............ 73,299 9,989 — 83,288
Securities borrowed .................................. 136,336 372 — 136,708
Customer and other receivables ......................... 27,328 21,022 611 48,961
Loans, net of allowance ............................... 28,755 37,822 — 66,577
Other assets(1) ...................................... 18,285 11,196 1,471 30,952
Total assets ........................................ $ 630,341 $ 165,147 $ 6,022 $ 801,510
(1) Other assets primarily includes Other investments; Premises, equipment and software costs; Goodwill; Intangible assets and deferred tax assets.
A substantial portion of the Company’s total assets consists of liquid marketable securities and short-term receivables arising
principally from sales and trading activities in the Institutional Securities business segment. The liquid nature of these assets
provides the Company with flexibility in managing the size of its balance sheet. Total assets decreased to $787 billion at
December 31, 2015 from $802 billion at December 31, 2014. The decrease in total assets was primarily due to reductions in
Trading assets within the Institutional Securities business segment (primarily within Fixed Income and Commodities),
partially offset by balance sheet growth related to higher Deposits, which were redeployed into lending activity and excess
cash and liquidity and by an increase in secured funding to support the Equity business within the Institutional Securities
business segment.
Securities borrowed or securities purchased under agreements to resell and securities loaned or securities sold under
agreements to repurchase are treated as collateralized financings (see Notes 2 and 6 to the consolidated financial statements
in Item 8).
Collateralized Financing Transactions and Average Balances.
At December 31, 2015 At December 31, 2014
Average Balance
2015 2014
(dollars in millions)
Securities purchased under agreements to resell and
Securities borrowed ....................... $ 230,073 $ 219,996 $ 252,971 $ 254,612
Securities sold under agreements to repurchase and
Securities loaned ......................... $ 56,050 $ 95,168 $ 85,421 $ 136,954
Period-end balances for Securities purchased under agreements to resell and Securities borrowed and Securities sold under
agreements to repurchase and Securities loaned at December 31, 2015 were lower than the average balances during 2015.
The balances moved in line with client financing activity and with general movements in firm inventory.
Securities purchased under agreements to resell and Securities borrowed period-end balances at December 31, 2014 were
lower than the average balances during 2014 due to a reduction in client financing activity and an increase in financing
balance sheet efficiencies. Securities sold under agreements to repurchase and Securities loaned period-end balances at
December 31, 2014 were lower than the average balances during 2014 as the Company’s assets decreased.
Securities financing assets and liabilities also include matched book transactions with minimal market, credit and/or liquidity
risk. Matched book transactions accommodate customers, as well as obtain securities for the settlement and financing of
inventory positions. The customer receivable portion of the securities financing transactions includes customer margin loans,
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