Variable Interest Entities and Securitization Activities

9 Months Ended

Sep. 30, 2025

Variable Interest Entities and Securitization Activities [Abstract]

Variable Interest Entities and Securitization Activities

Consolidated VIE Assets and Liabilities by Type of Activity


	At September 30, 2025				At December 31, 2024
$ in millions	VIE Assets		VIE Liabilities		VIE Assets		VIE Liabilities
MABS1	$	237	$	7	$	575	$	236
Investment vehicles2	224		35		378		189
MTOB	1,827		1,696		619		578
Other	87		3		156		4
Total	$	2,375	$	1,741	$	1,728	$	1,007

MTOB—Municipal tender option bonds

1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable.

2.Amounts include investment funds and CLOs.

Consolidated VIE Assets and Liabilities by Balance Sheet Caption


$ in millions	At September 30, 2025		At December 31, 2024
Assets
Cash and cash equivalents	$	20	$	37
Trading assets at fair value	936		1,395
Investment securities	1,402		278

Customer and other receivables	16		16
Other assets	1		2
Total	$	2,375	$	1,728
Liabilities

Other secured financings	$	1,703	$	921
Other liabilities and accrued expenses	35		82
Borrowings	3		4
Total	$	1,741	$	1,007
Noncontrolling interests	$	64	$	42

Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm while the related liabilities issued by consolidated VIEs are non-recourse to the Firm. However, in certain consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement.

In general, the Firm’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest holders.

Non-consolidated VIEs


	At September 30, 2025
$ in millions	MABS1		CDO		MTOB		OSF		Other2
VIE assets (UPB)	$	176,657	$	3,295	$	4,092	$	4,129	$	86,701
Maximum exposure to loss3
Debt and equity interests	$	29,770	$	161	$	—	$	2,455	$	12,101
Derivative and other contracts	—		—		2,834		—		4,731
Commitments, guarantees and other	8,614		—		—		—		231
Total	$	38,384	$	161	$	2,834	$	2,455	$	17,063
Carrying value of variable interests—Assets
Debt and equity interests	$	29,770	$	161	$	—	$	1,810	$	12,101
Derivative and other contracts	—		—		6		—		1,814
Total	$	29,770	$	161	$	6	$	1,810	$	13,915
Additional VIE assets owned4									$	16,697
Carrying value of variable interests—Liabilities
Derivative and other contracts	$	—	$	—	$	3	$	—	$	633

Total	$	—	$	—	$	3	$	—	$	633


	At December 31, 2024
$ in millions	MABS1		CDO		MTOB		OSF		Other2
VIE assets (UPB)	$	179,686	$	1,621	$	3,654	$	3,603	$	74,665
Maximum exposure to loss3
Debt and equity interests	$	26,974	$	62	$	—	$	2,267	$	12,097
Derivative and other contracts	—		—		2,454		—		3,936
Commitments, guarantees and other	8,554		—		—		—		535
Total	$	35,528	$	62	$	2,454	$	2,267	$	16,568
Carrying value of variable interests–Assets
Debt and equity interests	$	26,974	$	62	$	—	$	1,821	$	12,067
Derivative and other contracts	—		—		6		—		1,772
Total	$	26,974	$	62	$	6	$	1,821	$	13,839
Additional VIE assets owned4									$	15,777
Carrying value of variable interests—Liabilities
Derivative and other contracts	$	—	$	—	$	4	$	—	$	448

OSF–Other structured financings

1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets, and may be in loan or security form.

2.Other primarily includes exposures to commercial real estate property and investment funds.

3.Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm.

4.Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 4). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives.

The previous tables include VIEs sponsored by unrelated parties, as well as VIEs sponsored by the Firm; examples of the Firm’s involvement with these VIEs include its secondary market-making activities and the securities held in its Investment securities portfolio (see Note 7).

The Firm’s maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIE and is limited to the notional amounts of certain liquidity facilities and other credit support, total return swaps and written put options, as well as the fair value of certain other derivatives and investments the Firm has made in the VIE.

The Firm’s maximum exposure to loss in the previous tables does not include the offsetting benefit of hedges or any reductions associated with the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss.

Liabilities issued by VIEs generally are non-recourse to the Firm.

Detail of Mortgage- and Asset-Backed Securitization Assets


	At September 30, 2025				At December 31, 2024
$ in millions	UPB		Debt and Equity Interests		UPB		Debt and Equity Interests
Residential mortgages	$	14,893	$	2,878	$	17,316	$	2,497
Commercial mortgages	42,986		9,592		82,730		8,445
U.S. agency collateralized mortgage obligations	87,668		7,719		39,317		6,260
Other consumer or commercial loans	31,110		9,581		40,323		9,772
Total	$	176,657	$	29,770	$	179,686	$	26,974

Transferred Assets with Continuing Involvement


	At September 30, 2025
$ in millions	RML		CML		U.S. Agency CMO		CLN and Other1
SPE assets (UPB)2,3	$	13,509	$	80,099	$	14,595	$	13,080
Retained interests
Investment grade	$	268	$	457	$	530	$	—
Non-investment grade	368		1,058		—		119
Total	$	636	$	1,515	$	530	$	119
Interests purchased in the secondary market3
Investment grade	$	115	$	102	$	154	$	—
Non-investment grade	15		21		—		—
Total	$	130	$	123	$	154	$	—
Derivative assets	$	—	$	—	$	—	$	1,409
Derivative liabilities	—		—		—		582


	At December 31, 2024
$ in millions	RML		CML		U.S. Agency CMO		CLN and Other1
SPE assets (UPB)2,3	$	6,989	$	78,232	$	18,174	$	12,725
Retained interests
Investment grade	$	198	$	543	$	967	$	—
Non-investment grade	175		923		—		71
Total	$	373	$	1,466	$	967	$	71
Interests purchased in the secondary market3
Investment grade	$	45	$	34	$	79	$	—
Non-investment grade	5		24		—		—
Total	$	50	$	58	$	79	$	—
Derivative assets	$	—	$	—	$	—	$	1,408
Derivative liabilities	—		—		—		400


	Fair Value At September 30, 2025
$ in millions	Level 2		Level 3		Total
Retained interests
Investment grade	$	724	$	—	$	724
Non-investment grade	117		56		173
Total	$	841	$	56	$	897
Interests purchased in the secondary market3
Investment grade	$	371	$	—	$	371
Non-investment grade	15		21		36
Total	$	386	$	21	$	407
Derivative assets	$	1,409	$	—	$	1,409
Derivative liabilities	582		—		582


	Fair Value At December 31, 2024
$ in millions	Level 2		Level 3		Total
Retained interests
Investment grade	$	1,080	$	—	$	1,080
Non-investment grade	71		50		121
Total	$	1,151	$	50	$	1,201
Interests purchased in the secondary market3
Investment grade	$	158	$	—	$	158
Non-investment grade	18		11		29
Total	$	176	$	11	$	187
Derivative assets	$	1,408	$	—	$	1,408
Derivative liabilities	400		—		400

RML—Residential mortgage loans

CML—Commercial mortgage loans

1.Amounts include CLO transactions managed by unrelated third parties.

2.Amounts include assets transferred by unrelated transferors.

3.Amounts include transactions where the Firm also holds retained interests as part of the transfer.

The previous tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. The transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statement. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. Certain retained interests are carried at fair value in the balance sheet with changes in fair value recognized in the income statement. Fair value for these interests is measured using techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Note 2 in the 2024 Form 10-K and Note 4 herein. Further, as permitted by applicable guidance, certain transfers of assets where the Firm’s only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table.

Proceeds from New Securitization Transactions and Sales of Loans


	Three Months Ended September 30,				Nine Months Ended September 30,
$ in millions	2025		2024		2025		2024
New transactions1	$	11,538	$	7,562	$	37,984	$	24,160
Retained interests	5,092		850		10,332		5,041

1.Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented.

The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 13).

Assets Sold with Retained Exposure


$ in millions	At September 30, 2025		At December 31, 2024
Gross cash proceeds from sale of assets1	$	98,694	$	92,229
Fair value
Assets sold	$	100,308	$	92,580
Derivative assets recognized in the balance sheet	1,915		998
Derivative liabilities recognized in the balance sheet	303		648

1.The carrying value of assets derecognized at the time of sale approximates gross cash proceeds.

The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities.

For a discussion of the Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 15 to the financial statements in the 2024 Form 10-K.