Send us Feedback

Citigroup (C)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

C » Topics » Trading Account Assets (Liabilities)

This excerpt taken from the C 10-Q filed Nov 6, 2009.

9.     TRADING ACCOUNT ASSETS AND LIABILITIES

        Trading account assets and liabilities, at fair value, consisted of the following at September 30, 2009 and December 31, 2008:

In millions of dollars   September 30,
2009 		  December 31,
2008 		 

Trading account assets

              

Trading mortgage-backed securities

              
 

Agency guaranteed

   $ 23,549   $ 32,981  
 

Prime

     1,177     1,416  
 

Alt-A

     1,305     913  
 

Subprime

     10,638     14,552  
 

Non-U.S. residential

     1,923     2,447  
 

Commercial

     3,975     2,501  
           

Total trading mortgage-backed securities

   $ 42,567   $ 54,810  
           

U.S. Treasury and Federal Agencies

              
 

U.S. Treasuries

   $ 20,803   $ 7,370  
 

Agency and direct obligations

     3,933     4,017  
           

Total U.S. Treasury and Federal Agencies

   $ 24,736   $ 11,387  
           

State and municipal securities

   $ 7,196   $ 9,510  

Foreign government securities

     66,425     57,422  

Corporate

     47,485     54,654  

Derivatives(1)

     68,670     115,289  

Equity securities

     46,463     48,503  

Other debt securities

     37,155     26,060  
           

Total trading account assets

   $ 340,697   $ 377,635  
           

Trading account liabilities

              

Securities sold, not yet purchased

   $ 67,988   $ 50,693  

Derivatives(1)

     62,552     115,107  
           

Total trading account liabilities

   $ 130,540   $ 165,800  
           
(1)
Presented net, pursuant to master netting agreements. See Note 16 to the Consolidated Financial Statements, Derivatives Activities, for a discussion regarding the accounting and reporting for derivatives.

109

Table of Contents

These excerpts taken from the C 8-K filed Oct 13, 2009.

Trading Account Assets and Liabilities

 

Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in securitizations and physical commodities inventory. In addition (as set out in Note 27 to the Consolidated Financial Statements), certain assets that Citigroup has elected to carry at fair value under SFAS 159, such as loans and purchased guarantees, are also included in Trading account assets.

 

Trading account liabilities include securities sold, not yet purchased (short positions), and derivatives in a net payable position, as well as certain liabilities that Citigroup has elected to carry at fair value under SFAS 159 or SFAS 155, Accounting for Certain Hybrid Financial Instruments (SFAS 155) as set out in Note 27 to the Consolidated Financial Statements.

 

Other than physical commodities inventory, all trading account assets and liabilities are carried at fair value. Revenues generated from trading assets and trading liabilities are generally reported in Principal transactions and include realized gains and losses as well as unrealized gains and losses resulting from changes in the fair value of such instruments. Interest income on trading assets is recorded in Interest revenue reduced by interest expense on trading liabilities.

 

Physical commodities inventory is carried at the lower of cost or market (LOCOM) with related gains or losses reported in Principal transactions. Realized gains and losses on sales of commodities inventory are included in Principal transactions on a “first in, first out” basis.

 

Derivatives used for trading purposes include interest rate, currency, equity, credit, and commodity swap agreements, options, caps and floors, warrants, and financial and commodity futures and forward contracts. Derivative asset and liability positions are presented net by counterparty on the Consolidated Balance Sheet when a valid master netting agreement exists and the other conditions set out in FASB Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts” (FIN 39) are met.

 

The Company uses a number of techniques to determine the fair value of trading assets and liabilities, all of which are described in Note 26 to the Consolidated Financial Statements.

 

15. TRADING ACCOUNT ASSETS AND LIABILITIES

 

Trading account assets and liabilities, at fair value, consisted of the following at December 31:

 

In millions of dollars

 

2008

 

2007

 

Trading account assets

 

 

 

 

 

U.S. Treasury and federal agency securities

 

$

44,369

 

$

32,180

 

State and municipal securities

 

9,510

 

18,574

 

Foreign government securities

 

57,422

 

52,332

 

Corporate and other debt securities

 

54,654

 

181,333

 

Derivatives (1)

 

115,289

 

76,881

 

Equity securities

 

48,503

 

106,868

 

Mortgage loans and collateralized mortgage securities

 

21,830

 

56,740

 

Other (2)

 

26,058

 

14,076

 

Total trading account assets

 

$

377,635

 

$

538,984

 

Trading account liabilities

 

 

 

 

 

Securities sold, not yet purchased

 

$

50,693

 

$

78,541

 

Derivatives (1)

 

116,785

 

103,541

 

Total trading account liabilities

 

$

167,478

 

$

182,082

 

 

(1)   Pursuant to master netting agreements.

(2)   Includes commodity inventory measured at lower of cost or market.

 

48


 

This excerpt taken from the C 10-Q filed Aug 7, 2009.

9.     TRADING ACCOUNT ASSETS AND LIABILITIES

        Trading account assets and liabilities, at fair value, consisted of the following at June 30, 2009 and December 31, 2008:

In millions of dollars   June 30,
2009 		  December 31,
2008 		 

Trading account assets

              

Trading mortgage-backed securities

              
 

Agency guaranteed

   $ 27,174   $ 32,981  
 

Prime

     1,051     1,416  
 

Alt-A

     1,307     913  
 

Subprime

     10,583     14,552  
 

Non-U.S. residential

     1,586     2,447  
 

Commercial

     3,635     2,501  
           

Total Trading mortgage-backed securities

   $ 45,336   $ 54,810  
           

U.S. Treasury and Federal Agencies

              
 

U.S. Treasuries

   $ 9,763   $ 7,370  
 

Agency and direct obligations

     4,290     4,017  
           

Total U.S. Treasury and Federal Agencies

   $ 14,053   $ 11,387  
           

State and municipal securities

   $ 6,056   $ 9,510  

Foreign government securities

     57,670     57,422  

Corporate

     55,780     54,654  

Derivatives(1)

     73,158     115,289  

Equity securities

     39,932     48,503  

Other debt securities

     33,052     26,060  
           

Total trading account assets

   $ 325,037   $ 377,635  
           

Trading account liabilities

              

Securities sold, not yet purchased

   $ 55,764   $ 50,693  

Derivatives(1)

     63,548     116,785  
           

Total trading account liabilities

   $ 119,312   $ 167,478  
           
(1)
Presented net, pursuant to master netting agreements. See Note 16 to the Consolidated Financial Statements, Derivatives Activities, for a discussion regarding the accounting and reporting for derivatives.

95

Table of Contents

These excerpts taken from the C 10-K filed Feb 27, 2009.

Trading Account Assets (Liabilities)

Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in securitizations, and physical commodities inventory. In addition, certain assets that Citigroup has elected to carry at fair value under SFAS 155 and SFAS 159, such as certain loans and purchase guarantees, are also included in trading account assets. Trading account liabilities include securities sold, not yet purchased (short positions) and derivatives in a net payable position as well as certain liabilities that Citigroup has elected to carry at fair value under SFAS 155 and SFAS 159.

All trading account assets and liabilities are reported at their fair value, except for physical commodities inventory which is carried at the lower of cost or market, with unrealized gains and losses recognized in current income.

During 2008 trading account assets decreased by $161 billion, or 30%, due to:

 

•  

$127 billion, or 70%, decrease in corporate and other debt securities, driven by a decrease in the SIV assets, a decrease in commercial paper trading assets and the transfer of trading assets to investments held-to-maturity and available-for-sale (see “Reclassification of Financial Assets” on page 87);

•  

$58 billion, or 55%, decrease in equity securities;

•  

$35 billion, or 62%, decrease in mortgage loans and collateralized mortgage securities (CMOs); and

•  

$9 billion, or 49%, decrease in state and municipal securities;

offset by:

 

•  

$38 billion, or 50%, increase in revaluation gains primarily consisting of increases from interest rates, foreign exchange and credit derivative contracts, offset by an increase in netting permitted under master netting agreements;


 

78

Table of Contents

 

•  

$12 billion, or 38%, increase in U.S. Treasury and federal agency securities;

•  

$5 billion, or 10%, increase in foreign government securities; and

•  

$13 billion, or 85%, net increase in other trading securities.

Total average trading account assets were $381 billion in 2008, compared to $441 billion in 2007, yielding average rates of 4.6% and 4.2%, respectively.

During 2008 trading account liabilities decreased by $15 billion, or 8%, due to:

 

•  

$13 billion, or 13%, increase in revaluation losses primarily consisting of increases from interest rates, foreign exchange and credit derivative contracts, offset by an increase in netting permitted under master netting agreements; and

•  

$28 billion, or 35%, decrease in securities sold, not yet purchased, comprising a $28 billion decrease in debt securities, while U.S. Treasury securities remained flat.

In 2008, average trading account liabilities were $76 billion, yielding an average rate of 1.7%, compared to $105 billion and 1.4% in the prior year.

For further discussion regarding trading account assets and liabilities, see Note 15 to the Consolidated Financial Statements on page 156.

Trading Account Assets (Liabilities)

Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in securitizations, and physical commodities inventory. In addition, certain assets that Citigroup has elected to carry at fair value under SFAS 155 and SFAS 159, such as certain loans and purchase guarantees, are also included in trading account assets. Trading account liabilities include securities sold, not yet purchased (short positions) and derivatives in a net payable position as well as certain liabilities that Citigroup has elected to carry at fair value under SFAS 155 and SFAS 159.

All trading account assets and liabilities are reported at their fair value, except for physical commodities inventory which is carried at the lower of cost or market, with unrealized gains and losses recognized in current income.

During 2008 trading account assets decreased by $161 billion, or 30%, due to:

 

•  

$127 billion, or 70%, decrease in corporate and other debt securities, driven by a decrease in the SIV assets, a decrease in commercial paper trading assets and the transfer of trading assets to investments held-to-maturity and available-for-sale (see “Reclassification of Financial Assets” on page 87);

•  

$58 billion, or 55%, decrease in equity securities;

•  

$35 billion, or 62%, decrease in mortgage loans and collateralized mortgage securities (CMOs); and

•  

$9 billion, or 49%, decrease in state and municipal securities;

offset by:

 

•  

$38 billion, or 50%, increase in revaluation gains primarily consisting of increases from interest rates, foreign exchange and credit derivative contracts, offset by an increase in netting permitted under master netting agreements;


 

78

Table of Contents

 

•  

$12 billion, or 38%, increase in U.S. Treasury and federal agency securities;

•  

$5 billion, or 10%, increase in foreign government securities; and

•  

$13 billion, or 85%, net increase in other trading securities.

Total average trading account assets were $381 billion in 2008, compared to $441 billion in 2007, yielding average rates of 4.6% and 4.2%, respectively.

During 2008 trading account liabilities decreased by $15 billion, or 8%, due to:

 

•  

$13 billion, or 13%, increase in revaluation losses primarily consisting of increases from interest rates, foreign exchange and credit derivative contracts, offset by an increase in netting permitted under master netting agreements; and

•  

$28 billion, or 35%, decrease in securities sold, not yet purchased, comprising a $28 billion decrease in debt securities, while U.S. Treasury securities remained flat.

In 2008, average trading account liabilities were $76 billion, yielding an average rate of 1.7%, compared to $105 billion and 1.4% in the prior year.

For further discussion regarding trading account assets and liabilities, see Note 15 to the Consolidated Financial Statements on page 156.

Trading Account Assets and Liabilities

Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in securitizations and physical commodities inventory. In addition (as set out in Note 27 on page 200), certain assets that Citigroup has elected to carry at fair value under SFAS 159, such as loans and purchased guarantees, are also included in Trading account assets.

Trading account liabilities include securities sold, not yet purchased (short positions), and derivatives in a net payable position, as well as certain liabilities that Citigroup has elected to carry at fair value under SFAS 159 or SFAS 155, Accounting for Certain Hybrid Financial Instruments (SFAS 155) as set out in Note 27 on page 200.

Other than physical commodities inventory, all trading account assets and liabilities are carried at fair value. Revenues generated from trading assets and trading liabilities are generally reported in Principal transactions and include realized gains and losses as well as unrealized gains and losses resulting from changes in the fair value of such instruments. Interest income on trading assets is recorded in Interest revenue reduced by interest expense on trading liabilities.

Physical commodities inventory is carried at the lower of cost or market (LOCOM) with related gains or losses reported in Principal transactions. Realized gains and losses on sales of commodities inventory are included in Principal transactions on a “first in, first out” basis.

Derivatives used for trading purposes include interest rate, currency, equity, credit, and commodity swap agreements, options, caps and floors, warrants, and financial and commodity futures and forward contracts. Derivative asset and liability positions are presented net by counterparty on the Consolidated Balance Sheet when a valid master netting agreement exists and the other conditions set out in FASB Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts” (FIN 39) are met.

The Company uses a number of techniques to determine the fair value of trading assets and liabilities, all of which are described in Note 26 on page 191.

Trading Account Assets and Liabilities

Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in securitizations and physical commodities inventory. In addition (as set out in Note 27 on page 200), certain assets that Citigroup has elected to carry at fair value under SFAS 159, such as loans and purchased guarantees, are also included in Trading account assets.

Trading account liabilities include securities sold, not yet purchased (short positions), and derivatives in a net payable position, as well as certain liabilities that Citigroup has elected to carry at fair value under SFAS 159 or SFAS 155, Accounting for Certain Hybrid Financial Instruments (SFAS 155) as set out in Note 27 on page 200.

Other than physical commodities inventory, all trading account assets and liabilities are carried at fair value. Revenues generated from trading assets and trading liabilities are generally reported in Principal transactions and include realized gains and losses as well as unrealized gains and losses resulting from changes in the fair value of such instruments. Interest income on trading assets is recorded in Interest revenue reduced by interest expense on trading liabilities.

Physical commodities inventory is carried at the lower of cost or market (LOCOM) with related gains or losses reported in Principal transactions. Realized gains and losses on sales of commodities inventory are included in Principal transactions on a “first in, first out” basis.

Derivatives used for trading purposes include interest rate, currency, equity, credit, and commodity swap agreements, options, caps and floors, warrants, and financial and commodity futures and forward contracts. Derivative asset and liability positions are presented net by counterparty on the Consolidated Balance Sheet when a valid master netting agreement exists and the other conditions set out in FASB Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts” (FIN 39) are met.

The Company uses a number of techniques to determine the fair value of trading assets and liabilities, all of which are described in Note 26 on page 191.

15. TRADING ACCOUNT ASSETS AND LIABILITIES

Trading account assets and liabilities, at fair value, consisted of the following at December 31:

 

In millions of dollars   2008    2007

Trading account assets

     

U.S. Treasury and federal agency securities

   $ 44,369    $ 32,180

State and municipal securities

     9,510      18,574

Foreign government securities

     57,422      52,332

Corporate and other debt securities

     54,654      181,333

Derivatives (1)

     115,289      76,881

Equity securities

     48,503      106,868

Mortgage loans and collateralized mortgage securities

     21,830      56,740

Other (2)

     26,058      14,076

Total trading account assets

   $ 377,635    $ 538,984

Trading account liabilities

     

Securities sold, not yet purchased

   $ 50,693    $ 78,541

Derivatives (1)

     116,785      103,541

Total trading account liabilities

   $ 167,478    $ 182,082

 

(1) Pursuant to master netting agreements.
(2) Includes commodity inventory measured at lower of cost or market.

 

157

Table of Contents

 

15. TRADING ACCOUNT ASSETS AND LIABILITIES

Trading account assets and liabilities, at fair value, consisted of the following at December 31:

 

In millions of dollars   2008    2007

Trading account assets

     

U.S. Treasury and federal agency securities

   $ 44,369    $ 32,180

State and municipal securities

     9,510      18,574

Foreign government securities

     57,422      52,332

Corporate and other debt securities

     54,654      181,333

Derivatives (1)

     115,289      76,881

Equity securities

     48,503      106,868

Mortgage loans and collateralized mortgage securities

     21,830      56,740

Other (2)

     26,058      14,076

Total trading account assets

   $ 377,635    $ 538,984

Trading account liabilities

     

Securities sold, not yet purchased

   $ 50,693    $ 78,541

Derivatives (1)

     116,785      103,541

Total trading account liabilities

   $ 167,478    $ 182,082

 

(1) Pursuant to master netting agreements.
(2) Includes commodity inventory measured at lower of cost or market.

 

157

Table of Contents

 

EXCERPTS ON THIS PAGE:

10-Q
Nov 6, 2009
8-K (2 sections)
Oct 13, 2009
10-Q
Aug 7, 2009
10-K (6 sections)
Feb 27, 2009

RELATED TOPICS for C:

"Trading Account Assets (Liabilities)" elsewhere:

Bank of America (BAC)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki