TD Bank 2014 Annual Report Download - page 92

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS90
TD’s liquidity policy stipulates that the Bank must maintain sufficient
“available liquidity” to cover “required liquidity” at all times through-
out the Severe Combined Stress scenario. The liquid assets TD includes
as available liquidity must be currently marketable, of sufficient credit
quality and available-for-sale and/or pledging to be considered readily
convertible into cash over the 90-day survival horizon. Liquid assets
that TD considers when determining the Bank’s available liquidity are
summarized in the following table, which does not include assets held
within the Bank’s insurance businesses, as these assets are dedicated
to cover insurance liabilities and are not considered available to meet
the Bank’s general liquidity requirements.
(billions of Canadian dollars, except as noted) As at
Securities
received as
collateral from
securities
financing and
Bank-owned derivative Encumbered Unencumbered
liquid assets transactions
Total liquid assets liquid assets liquid assets
October 31, 2014
Cash and due from Banks $ 0.1 $ – $ 0.1 –% $ – $ 0.1
Canadian government obligations 10.0 27.2 37.2 10 21.0 16.2
NHA MBS 39.4 1.0 40.4 11 2.1 38.3
Provincial government obligations 6.9 5.2 12.1 4 6.7 5.4
Corporate issuer obligations 8.3 3.4 11.7 3 0.2 11.5
Equities 22.7 3.8 26.5 7 6.2 20.3
Other marketable securities and/or loans 2.4 0.9 3.3 1 0.8 2.5
Total Canadian dollar-denominated 89.8 41.5 131.3 36 37.0 94.3
Cash and due from Banks 39.8 – 39.8 11 1.1 38.7
U.S. government obligations – 24.8 24.8 7 23.6 1.2
U.S. federal agency obligations, including U.S. federal
agency mortgage-backed obligations 31.2 5.6 36.8 10 13.1 23.7
Other sovereign obligations 23.3 28.7 52.0 14 10.5 41.5
Corporate issuer obligations 54.5 10.8 65.3 18 13.8 51.5
Equities 9.7 2.6 12.3 3 1.7 10.6
Other marketable securities and/or loans 4.2 0.1 4.3 1 – 4.3
Total non-Canadian dollar-denominated 162.7 72.6 235.3 64 63.8 171.5
Total $ 252.5 $ 114.1 $ 366.6 100% $ 100.8 $ 265.8
October 31, 2013
Canadian government obligations $ 16.7 $ 27.3 $ 44.0 13% $ 25.3 $ 18.7
NHA MBS 42.6 0.6 43.2 13 7.9 35.3
Provincial government obligations 4.3 5.4 9.7 3 5.9 3.8
Corporate issuer obligations 6.5 4.0 10.5 3 0.6 9.9
Equities 20.1 3.0 23.1 7 4.8 18.3
Other marketable securities and/or loans 2.8 0.2 3.0 1 0.3 2.7
Total Canadian dollar-denominated 93.0 40.5 133.5 40 44.8 88.7
Cash and due from Banks 20.6 – 20.6 6 0.5 20.1
U.S. government obligations 1.7 28.6 30.3 9 28.6 1.7
U.S. federal agency obligations, including U.S. federal
agency mortgage-backed obligations 26.0 4.9 30.9 9 7.7 23.2
Other sovereign obligations 27.4 23.8 51.2 16 3.1 48.1
Corporate issuer obligations 41.7 2.6 44.3 13 5.1 39.2
Equities 8.0 1.7 9.7 3 0.8 8.9
Other marketable securities and/or loans 6.0 5.5 11.5 4 5.8 5.7
Total non-Canadian dollar-denominated 131.4 67.1 198.5 60 51.6 146.9
Total $ 224.4 $ 107.6 $ 332.0 100% $ 96.4 $ 235.6
SUMMARY OF LIQUID ASSETS BY TYPE AND CURRENCY1,2
TABLE 58
1 Positions stated include gross asset values pertaining to secured borrowing/lending
and reverse-repurchase/repurchase businesses.
2 Liquid assets include collateral received that can be rehypothecated
or otherwise redeployed.