Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Notional exposure of derivative instruments


	December 31, 2022				December 31, 2021
	Long Notional Exposure		Short Notional Exposure		Long Notional Exposure		Short Notional Exposure

		(in millions)
Primary underlying risk:
Equity contracts	$	1,816	$	5,354	$	1,582	$	5,986
Credit contracts⁽¹⁾		—		945		—		2,081
Commodity contracts		—		22		—		—

(1)

The short notional amount on our credit default swap positions was approximately $3.5 billion at December 31, 2022. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $0.9 billion as of December 31, 2022. The short notional amount on our credit default swap positions was approximately $6.6 billion as of December 31, 2021. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is $2.1 billion as of December 31, 2021.

Fair value and income recognized for derivatives not designated as hedging instruments


	Derivative Assets				Derivative Liabilities
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021

		(in millions)
Equity contracts	$	392	$	68	$	719	$	1,317
Credit contracts		447		1,075		1		—
Commodity contracts		—		—		1		—
Sub-total		839		1,143		721		1,317
Netting across contract types⁽¹⁾		(34)		(532)		(34)		(532)
Total⁽¹⁾	$	805	$	611	$	687	$	785

(1)

Excludes netting of cash collateral received and posted. The total collateral posted at December 31, 2022 and 2021 was $1,436 million and $1,906 million, respectively, across all counterparties, which are included in cash held at consolidated affiliated partnerships and restricted cash in the consolidated balance sheets.

The following table presents the amount of gain (loss) recognized in the consolidated statements of operations for our Investment segment’s derivatives not designated as hedging instruments:


	Gain (Loss) Recognized in Income⁽¹⁾
	Year Ended December 31,
	2022		2021		2020

Equity contracts	$	456	$	(1,100)	$	(1,583)
Credit contracts		(586)		88		1,088
Commodity contracts		(1)		—		—
	$	(131)	$	(1,012)	$	(495)

(1)	Gains (losses) recognized on derivatives are classified in net gain (loss) from investment activities in our consolidated statements of operations for our Investment segment.