The table below presents financial assets and liabilities carried at fair value.


	As of December

$ in millions	2025			2024
Total level 1 financial assets	$	515,386		$	436,298
Total level 2 financial assets	473,090			497,514
Total level 3 financial assets	20,324			20,358
Investments in funds at NAV	1,739			2,547
Counterparty and cash collateral netting	(46,573)			(49,048)
Total financial assets at fair value	$	963,966		$	907,669

Total assets	$	1,809,320		$	1,675,972

Total level 3 financial assets divided by:
Total assets	1.1		%	1.2		%
Total financial assets at fair value	2.1		%	2.2		%

Total level 1 financial liabilities	$	140,556		$	100,350
Total level 2 financial liabilities	648,454			611,340
Total level 3 financial liabilities	32,130			25,721
Counterparty and cash collateral netting	(46,255)			(37,750)
Total financial liabilities at fair value	$	774,885		$	699,661

Total liabilities	$	1,684,348		$	1,553,976

Total level 3 financial liabilities divided by:
Total liabilities	1.9		%	1.7%
Total financial liabilities at fair value	4.1		%	3.7%

In the table above:

•Counterparty netting among positions classified in the same level is included in that level.

•Counterparty and cash collateral netting represents the impact on derivatives of netting across levels.

The table below presents a summary of level 3 financial assets.


	As of December

$ in millions	2025		2024
Trading assets:
Trading cash instruments	$	904	$	1,213
Derivatives	4,283		4,126
Investments	14,411		14,142
Loans	546		683
Other assets	180		194
Total	$	20,324	$	20,358

Level 3 financial assets as of December 2025 were essentially unchanged compared with December 2024. See Note 5 for further information about level 3 financial assets (including information about unrealized gains and losses related to level 3 financial assets and transfers into and out of level 3).

The valuation techniques and nature of significant inputs used to determine the fair value of the firm’s financial instruments are described below. See Note 5 for further information about significant unobservable inputs used to value level 3 financial instruments.

Valuation Techniques and Significant Inputs for Trading Cash Instruments, Investments and Loans

Level 1. Level 1 instruments include U.S. government obligations, most non-U.S. government obligations, certain agency obligations, certain corporate debt instruments, certain money market instruments and actively traded listed equities. These instruments are valued using quoted prices for identical unrestricted instruments in active markets. The firm defines active markets for equity instruments based on the average daily trading volume both in absolute terms and relative to the market capitalization for the instrument. The firm defines active markets for debt instruments based on both the average daily trading volume and the number of days with trading activity.

Level 2. Level 2 instruments include certain non-U.S. government obligations, most agency obligations, most mortgage-backed loans and securities, most corporate debt instruments, most state and municipal obligations, most money market instruments, most other debt obligations, restricted or less liquid listed equities, certain private equities, commodities and certain lending commitments.

Valuations of level 2 instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g., indicative or executable) and the relationship of recent market activity to the prices provided from alternative pricing sources.

Valuation adjustments are typically made to level 2 instruments (i) if the instrument is subject to transfer restrictions and/or (ii) for other premiums and liquidity discounts that a market participant would require to arrive at fair value. Valuation adjustments are generally based on market evidence.

Level 3. Level 3 instruments have one or more significant valuation inputs that are not observable. Absent evidence to the contrary, level 3 instruments are initially valued at transaction price, which is considered to be the best initial estimate of fair value. Subsequently, the firm uses other methodologies to determine fair value, which vary based on the type of instrument. Valuation inputs and assumptions are changed when corroborated by substantive observable evidence, including values realized on sales.

Valuation techniques of level 3 instruments vary by instrument, but are generally based on discounted cash flow techniques. The valuation techniques and the nature of significant inputs used to determine the fair values of each type of level 3 instrument are described below:

Loans and Securities Backed by Commercial Real Estate

Loans and securities backed by commercial real estate are directly or indirectly collateralized by a single property or a portfolio of properties, and may include tranches of varying levels of subordination. Significant inputs are generally determined based on relative value analyses and include:

•Market yields implied by transactions of similar or related assets and/or current levels and changes in market indices, such as the CMBX (an index that tracks the performance of commercial mortgage bonds);

•Transaction prices in both the underlying collateral and instruments with the same or similar underlying collateral;

•A measure of expected future cash flows in a default scenario (recovery rates) implied by the value of the underlying collateral, which is mainly driven by current performance of the underlying collateral and capitalization rates. Recovery rates are expressed as a percentage of notional or face value of the instrument and reflect the benefit of credit enhancements on certain instruments; and

•Timing of expected future cash flows (duration) which, in certain cases, may incorporate the impact of any loan forbearances and other unobservable inputs (e.g., prepayment speeds).

Loans and Securities Backed by Residential Real Estate

Loans and securities backed by residential real estate are directly or indirectly collateralized by portfolios of residential real estate and may include tranches of varying levels of subordination. Significant inputs are generally determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles. Significant inputs include:

•Market yields implied by transactions of similar or related assets;

•Transaction prices in both the underlying collateral and instruments with the same or similar underlying collateral; and

•Duration, driven by underlying loan prepayment speeds and residential property liquidation timelines.

Corporate Debt Instruments

Corporate debt instruments includes corporate loans, debt securities and convertible debentures. Significant inputs for corporate debt instruments are generally determined based on relative value analyses, which incorporate comparisons both to prices of credit default swaps that reference the same or similar underlying instrument or entity and to other debt instruments for the same or similar issuer for which observable prices or broker quotations are available. Significant inputs include:

•Market yields implied by transactions of similar or related assets and/or current levels and trends of market indices, such as the CDX (an index that tracks the performance of corporate credit);

•Current performance and recovery assumptions and, where the firm uses credit default swaps to value the related instrument, the cost of borrowing the underlying reference obligation;

•Duration; and

•Market and transaction multiples for corporate debt instruments with convertibility or participation options.

Equity Securities

Equity securities consists of private equities. Recent third-party completed or pending transactions (e.g., merger proposals, debt restructurings, tender offers) are considered the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate:

•Industry multiples (primarily EBITDA and revenue multiples) and public comparables;

•Transactions in similar instruments;

•Discounted cash flow techniques; and

•Third-party appraisals.

The firm also considers changes in the outlook for the relevant industry and financial performance of the issuer as compared to projected performance. Significant inputs include:

•Market and transaction multiples;

•Discount rates and capitalization rates; and

•For equity securities with debt-like features, market yields implied by transactions of similar or related assets, current performance and recovery assumptions, and duration.

Other Trading Cash Instruments, Investments and Loans

The significant inputs to the valuation of other trading cash instruments, investments and loans are generally determined based on relative value analyses, which incorporate comparisons both to prices of credit default swaps that reference the same or similar underlying instrument or entity and to other debt instruments for the same issuer for which observable prices or broker quotations are available. Significant inputs include:

•Market yields implied by transactions of similar or related assets and/or current levels and trends of market indices;

•Current performance and recovery assumptions and, where the firm uses credit default swaps to value the related instrument, the cost of borrowing the underlying reference obligation; and

•Duration.

Valuation Techniques and Significant Inputs for Derivatives

The firm’s level 2 and level 3 derivatives are valued using derivative pricing models (e.g., discounted cash flow models, correlation models and models that incorporate option pricing methodologies, such as Monte Carlo simulations). Price transparency of derivatives can generally be characterized by product type, as described below.

•Interest Rate. In general, the key inputs used to value interest rate derivatives are transparent, even for most long-dated contracts. Interest rate swaps and options denominated in the currencies of leading industrialized nations are characterized by high trading volumes and tight bid/offer spreads. Interest rate derivatives that reference indices, such as an inflation index, or the shape of the yield curve (e.g., 10-year swap rate vs. 2-year swap rate) are more complex, but the key inputs are generally observable.

•Credit. Price transparency for credit default swaps, including both single names and baskets of credits, varies by market and underlying reference entity or obligation. Credit default swaps that reference indices, large corporates and major sovereigns generally exhibit the most price transparency. For credit default swaps with other underliers, price transparency varies based on credit rating, the cost of borrowing the underlying reference obligations, and the availability of the underlying reference obligations for delivery upon the default of the issuer. Credit default swaps that reference loans, asset-backed securities and emerging market debt instruments tend to have less price transparency than those that reference corporate bonds. In addition, more complex credit derivatives, such as those sensitive to the correlation between two or more underlying reference obligations, generally have less price transparency.

•Currency. Prices for currency derivatives based on the exchange rates of leading industrialized nations, including those with longer tenors, are generally transparent. The primary difference between the price transparency of developed and emerging market currency derivatives is that emerging markets tend to be only observable for contracts with shorter tenors.

•Commodity. Commodity derivatives include transactions referenced to energy (e.g., oil, natural gas and electricity), metals (e.g., precious and base) and soft commodities (e.g., agricultural). Price transparency varies based on the underlying commodity, delivery location, tenor and product quality (e.g., diesel fuel compared to unleaded gasoline). In general, price transparency for commodity derivatives is greater for contracts with shorter tenors and contracts that are more closely aligned with major and/or benchmark commodity indices.

•Equity. Price transparency for equity derivatives varies by market and underlier. Options on indices and the common stock of corporates included in major equity indices exhibit the most price transparency. Equity derivatives generally have observable market prices, except for contracts with long tenors or reference prices that differ significantly from current market prices. More complex equity derivatives, such as those sensitive to the correlation between two or more individual stocks, generally have less price transparency.

Liquidity is essential to the observability of all product types. If transaction volumes decline, previously transparent prices and other inputs may become unobservable. Conversely, even highly structured products may at times have trading volumes large enough to provide observability of prices and other inputs.

Level 1. Level 1 derivatives include short-term contracts for future delivery of securities when the underlying security is a level 1 instrument, and exchange-traded derivatives if they are actively traded and are valued at their quoted market price.

Level 2. Level 2 derivatives include OTC derivatives for which all significant valuation inputs are corroborated by market evidence and exchange-traded derivatives that are not actively traded and/or that are valued using models that calibrate to market-clearing levels of OTC derivatives.

The selection of a particular model to value a derivative depends on the contractual terms of and specific risks inherent in the instrument, as well as the availability of pricing information in the market. For derivatives that trade in liquid markets, model selection does not involve significant management judgment because outputs of models can be calibrated to market-clearing levels.

Valuation models require a variety of inputs, such as contractual terms, market prices, yield curves, discount rates (including those derived from interest rates on collateral received and posted as specified in credit support agreements for collateralized derivatives), credit curves, measures of volatility, prepayment rates, loss severity rates and correlations of such inputs. Significant inputs to the valuations of level 2 derivatives can be verified to market transactions, broker or dealer quotations or other alternative pricing sources with reasonable levels of price transparency. Consideration is given to the nature of the quotations (e.g., indicative or executable) and the relationship of recent market activity to the prices provided from alternative pricing sources.

Level 3. Level 3 derivatives are valued using models which utilize observable level 1 and/or level 2 inputs, as well as unobservable level 3 inputs. The significant unobservable inputs used to value the firm’s level 3 derivatives are described below.

•For level 3 interest rate and currency derivatives, significant unobservable inputs include correlations of certain currencies and interest rates (e.g., the correlation between Euro inflation and Euro interest rates) and specific interest rate and currency volatilities.

•For level 3 credit derivatives, significant unobservable inputs include illiquid credit spreads and upfront credit points, which are unique to specific reference obligations and reference entities, and recovery rates.

•For level 3 commodity derivatives, significant unobservable inputs include volatilities for options with strike prices that differ significantly from current market prices and prices or spreads for certain products for which the product quality or physical location of the commodity is not aligned with benchmark indices.

•For level 3 equity derivatives, significant unobservable inputs generally include equity volatility inputs for options that are long-dated and/or have strike prices that differ significantly from current market prices. In addition, the valuation of certain structured trades requires the use of level 3 correlation inputs, such as the correlation of the price performance of two or more individual stocks or the correlation of the price performance for a basket of stocks to another asset class, such as commodities.

Subsequent to the initial valuation of a level 3 derivative, the firm updates the level 1 and level 2 inputs to reflect observable market changes and any resulting gains and losses are classified in level 3. Level 3 inputs are changed when corroborated by evidence, such as similar market transactions, third-party pricing services and/or broker or dealer quotations or other empirical market data. In circumstances where the firm cannot verify the model value by reference to market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. See Note 5 for further information about significant unobservable inputs used in the valuation of level 3 derivatives.

Valuation Adjustments. Valuation adjustments are integral to determining the fair value of derivative portfolios and are used to adjust the mid-market valuations produced by derivative pricing models to the exit price valuation. These adjustments incorporate bid/offer spreads, the cost of liquidity, and credit and funding valuation adjustments, which account for the credit and funding risk inherent in the uncollateralized portion of derivative portfolios. The firm also makes funding valuation adjustments to collateralized derivatives where the terms of the agreement do not permit the firm to deliver or repledge collateral received. Market-based inputs are generally used when calibrating valuation adjustments to market-clearing levels.

In addition, for derivatives that include significant unobservable inputs, the firm makes model or exit price adjustments to account for the valuation uncertainty present in the transaction.

Valuation Techniques and Significant Inputs for Other Financial Assets and Liabilities at Fair Value

In addition to trading cash instruments, derivatives, and certain investments and loans, the firm accounts for certain of its other financial assets and liabilities at fair value under the fair value option. Such instruments include repurchase agreements and substantially all resale agreements; certain securities borrowed and loaned transactions; certain customer and other receivables, including certain margin loans; certain time deposits, including structured certificates of deposit, which are hybrid financial instruments; substantially all other secured financings, including structured financing arrangements and transfers of assets accounted for as financings; certain unsecured short- and long-term borrowings, substantially all of which are hybrid financial instruments; and certain other assets and liabilities. These instruments are generally valued based on discounted cash flow techniques, which incorporate inputs with reasonable levels of price transparency, and are generally classified in level 2 because the inputs are observable. Valuation adjustments may be made for liquidity and for counterparty and the firm’s credit quality. The significant inputs used to value the firm’s other financial assets and liabilities are described below.

Resale and Repurchase Agreements and Securities Borrowed and Loaned. The significant inputs to the valuation of resale and repurchase agreements and securities borrowed and loaned are funding spreads, the amount and timing of expected future cash flows and interest rates.

Customer and Other Receivables. The significant inputs to the valuation of receivables are interest rates, the amount and timing of expected future cash flows and funding spreads.

Deposits. The significant inputs to the valuation of time deposits are interest rates and the amount and timing of future cash flows. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives and Note 13 for further information about deposits.

Other Secured Financings. The significant inputs to the valuation of other secured financings are the amount and timing of expected future cash flows, interest rates, volatility, funding spreads and the fair value of the collateral delivered by the firm (determined using the amount and timing of expected future cash flows, market prices, market yields and recovery assumptions). See Note 11 for further information about other secured financings.

Unsecured Short- and Long-Term Borrowings. The significant inputs to the valuation of unsecured short- and long-term borrowings include the amount and timing of expected future cash flows, interest rates, volatility, the credit spreads of the firm and commodity prices for prepaid commodity transactions. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives and Note 14 for further information about borrowings.

Other Assets and Liabilities. The significant inputs to the valuation of other assets and liabilities are the amount and timing of expected future cash flows, interest rates, market yields, volatility and correlation inputs. The inputs used to value the embedded derivative component of hybrid financial instruments are consistent with the inputs used to value the firm’s other derivative instruments described above. See Note 7 for further information about derivatives.


$ in millions	Level 1		Level 2		Level 3		Total
As of December 2025
Assets
Government and agency obligations:
U.S.	$	158,405	$	73,208	$	–	$	231,613
Non-U.S.	67,538		36,349		11		103,898
Loans and securities backed by:
Commercial real estate	–		1,659		63		1,722
Residential real estate	–		12,684		92		12,776
Corporate debt instruments	213		50,521		484		51,218
State and municipal obligations	–		377		2		379
Other debt obligations	1,526		3,534		90		5,150
Equity securities	189,231		1,593		162		190,986
Commodities	–		6,101		–		6,101
Total	$	416,913	$	186,026	$	904	$	603,843

Liabilities
Government and agency obligations:
U.S.	$	(23,172)	$	(15)	$	–	$	(23,187)
Non-U.S.	(49,628)		(4,014)		(3)		(53,645)
Loans and securities backed by:
Commercial real estate	–		(41)		–		(41)
Residential real estate	–		(18)		–		(18)
Corporate debt instruments	(307)		(32,597)		(101)		(33,005)
Other debt obligations	–		(133)		–		(133)
Equity securities	(67,429)		(2)		(15)		(67,446)
Commodities	–		(672)		–		(672)
Total	$	(140,536)	$	(37,492)	$	(119)	$	(178,147)

As of December 2024
Assets
Government and agency obligations:
U.S.	$	169,121	$	66,958	$	–	$	236,079
Non-U.S.	44,427		25,071		41		69,539
Loans and securities backed by:
Commercial real estate	–		1,450		38		1,488
Residential real estate	–		11,364		57		11,421
Corporate debt instruments	172		46,739		728		47,639
State and municipal obligations	–		529		–		529
Other debt obligations	1		2,236		95		2,332
Equity securities	141,821		1,143		242		143,206
Commodities	–		10,971		12		10,983
Total	$	355,542	$	166,461	$	1,213	$	523,216

Liabilities
Government and agency obligations:
U.S.	$	(21,181)	$	(52)	$	–	$	(21,233)
Non-U.S.	(37,466)		(3,283)		(3)		(40,752)
Loans and securities backed by:
Commercial real estate	–		(32)		(1)		(33)
Residential real estate	–		(20)		–		(20)
Corporate debt instruments	(75)		(23,755)		(52)		(23,882)
Other debt obligations	–		(72)		–		(72)
Equity securities	(41,528)		(12)		(19)		(41,559)
Commodities	–		(24)		–		(24)
Total	$	(100,250)	$	(27,250)	$	(75)	$	(127,575)

Trading cash instruments consists of instruments held in connection with the firm’s market-making or risk management activities. These instruments are carried at fair value and the related fair value gains and losses are recognized in the consolidated statements of earnings.

In the table above:

•Assets are shown as positive amounts and liabilities are shown as negative amounts.

•Corporate debt instruments includes corporate loans, debt securities, convertible debentures, prepaid commodity transactions and transfers of assets accounted for as secured loans rather than purchases.

•Other debt obligations includes other asset-backed securities and money market instruments.

•Equity securities includes public equities and exchange-traded funds.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of trading cash instruments.

Significant Unobservable Inputs. The table below presents the amount of level 3 trading cash instrument assets, and ranges and weighted averages of significant unobservable inputs used to value such trading cash instrument assets.


	As of December 2025				As of December 2024
$ in millions	Amount or Range		Weighted Average		Amount or Range		Weighted Average
Loans and securities backed by real estate
Level 3 assets	$	155			$	95
Yield	3.1% to 45.1%		10.6	%	7.2% to 24.3%		11.5	%
Recovery rate	22.3% to 62.5%		36.5	%	23.3% to 69.2%		50.9	%

Duration (years)	0.3 to 9.0		3.4		1.9 to 12.1		3.7
Corporate debt instruments
Level 3 assets	$	484			$	728
Yield	2.1% to 18.0%		8.0	%	3.0% to 35.9%		13.0	%
Recovery rate	4.1% to 72.0%		32.3	%	6.8% to 69.0%		53.6	%
Duration (years)	2.3 to 14.7		3.9		1.6 to 3.3		2.3
Other
Level 3 assets	$	265			$	390
Yield	8.4% to 30.0%		17.5	%	4.7% to 37.9%		15.2	%

Duration (years)	0.2 to 8.7		2.6		1.5 to 3.5		2.4

In the table above:

•Other includes government and agency obligations, state and municipal obligations, other debt obligations, equity securities and commodities.

•Ranges represent the significant unobservable inputs that were used in the valuation of each type of trading cash instrument.

•Weighted averages are calculated by weighting each input by the relative fair value of the trading cash instruments.

•The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one trading cash instrument. For example, the highest recovery rate for corporate debt instruments is appropriate for valuing a specific corporate debt instrument, but may not be appropriate for valuing any other corporate debt instrument. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 trading cash instruments.

•Increases in yield or duration used in the valuation of level 3 trading cash instruments would have resulted in a lower fair value measurement, while an increase in recovery rate would have resulted in a higher fair value measurement as of both December 2025 and December 2024. Due to the distinctive nature of each level 3 trading cash instrument, the interrelationship of inputs is not necessarily uniform within each product type.

•Trading cash instruments are valued using discounted cash flows.

Level 3 Rollforward. The table below presents a summary of the changes in fair value for level 3 trading cash instruments.


	Year Ended December

$ in millions	2025		2024
Assets
Beginning balance	$	1,213	$	1,791
Net realized gains/(losses)	104		161
Net unrealized gains/(losses)	(11)		7
Purchases	455		512
Sales	(356)		(618)
Settlements	(498)		(382)
Transfers into level 3	119		222
Transfers out of level 3	(122)		(480)
Ending balance	$	904	$	1,213

Liabilities
Beginning balance	$	(75)	$	(78)
Net realized gains/(losses)	4		4
Net unrealized gains/(losses)	(4)		(25)
Purchases	42		57
Sales	(77)		(43)
Settlements	1		1
Transfers into level 3	(16)		(9)
Transfers out of level 3	6		18
Ending balance	$	(119)	$	(75)

In the table above:

•Changes in fair value are presented for all trading cash instruments that are classified in level 3 as of the end of the period.

•Net unrealized gains/(losses) relates to trading cash instruments that were still held at period-end.

•Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a trading cash instrument was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.

•For level 3 trading cash instrument assets, increases are shown as positive amounts, while decreases are shown as negative amounts. For level 3 trading cash instrument liabilities, increases are shown as negative amounts, while decreases are shown as positive amounts.

•Level 3 trading cash instruments are frequently economically hedged with level 1 and level 2 trading cash instruments and/or level 1, level 2 or level 3 derivatives. Accordingly, gains or losses that are classified in level 3 can be partially offset by gains or losses attributable to level 1 or level 2 trading cash instruments and/or level 1, level 2 or level 3 derivatives. As a result, gains or losses included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.

The table below presents information, by product type, for assets included in the summary table above.


	Year Ended December

$ in millions	2025		2024
Loans and securities backed by real estate
Beginning balance	$	95	$	144
Net realized gains/(losses)	5		18
Net unrealized gains/(losses)	4		(11)
Purchases	57		37
Sales	(8)		(33)
Settlements	(10)		(28)
Transfers into level 3	44		6
Transfers out of level 3	(32)		(38)
Ending balance	$	155	$	95

Corporate debt instruments
Beginning balance	$	728	$	1,415
Net realized gains/(losses)	88		87
Net unrealized gains/(losses)	6		2
Purchases	281		253
Sales	(219)		(389)
Settlements	(442)		(327)
Transfers into level 3	60		116
Transfers out of level 3	(18)		(429)
Ending balance	$	484	$	728

Other
Beginning balance	$	390	$	232
Net realized gains/(losses)	11		56
Net unrealized gains/(losses)	(21)		16
Purchases	117		222
Sales	(129)		(196)
Settlements	(46)		(27)
Transfers into level 3	15		100
Transfers out of level 3	(72)		(13)
Ending balance	$	265	$	390

In the table above, other includes government and agency obligations, state and municipal obligations, other debt obligations, equity securities and commodities.

Level 3 Rollforward Commentary for the Year Ended December 2025. The net realized and unrealized gains on level 3 trading cash instrument assets of $93 million (reflecting $104 million of net realized gains and $11 million of net unrealized losses) for 2025 included gains of $14 million reported in market making and $79 million reported in interest income.

The drivers of the net unrealized losses on level 3 trading cash instrument assets for 2025 were not material.

The drivers of both transfers into and transfers out of level 3 trading cash instrument assets during 2025 were not material.

Level 3 Rollforward Commentary for the Year Ended December 2024. The net realized and unrealized gains on level 3 trading cash instrument assets of $168 million (reflecting $161 million of net realized gains and $7 million of net unrealized gains) for 2024 included gains of $100 million reported in market making and $68 million reported in interest income.

The drivers of the net unrealized gains on level 3 trading cash instrument assets for 2024 were not material.

Transfers into level 3 trading cash instrument assets during 2024 primarily reflected transfers of certain corporate debt instruments and certain other debt obligations (included in other cash instruments) from level 2 (in each case, principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments).

Transfers out of level 3 trading cash instrument assets during 2024 primarily reflected transfers of certain corporate debt instruments to level 2 (principally due to increased price transparency as a result of market evidence, including market transactions in these instruments).

Derivatives

Fair Value by Level. The table below presents derivatives on a gross basis by level and product type, as well as the impact of netting.


$ in millions	Level 1		Level 2		Level 3		Total
As of December 2025
Assets
Interest rates	$	6	$	161,089	$	618	$	161,713
Credit	–		11,305		2,470		13,775
Currencies	–		79,714		80		79,794
Commodities	–		16,151		949		17,100
Equities	5		86,643		1,050		87,698
Gross fair value	11		354,902		5,167		360,080
Counterparty netting in levels	–		(259,670)		(884)		(260,554)
Subtotal	$	11	$	95,232	$	4,283	$	99,526
Cross-level counterparty netting							(621)
Cash collateral netting							(45,952)
Net fair value							$	52,953

Liabilities
Interest rates	$	(11)	$	(121,455)	$	(722)	$	(122,188)
Credit	–		(13,296)		(839)		(14,135)
Currencies	–		(83,756)		(58)		(83,814)
Commodities	–		(19,302)		(214)		(19,516)
Equities	(9)		(147,803)		(3,749)		(151,561)
Gross fair value	(20)		(385,612)		(5,582)		(391,214)
Counterparty netting in levels	–		259,670		884		260,554
Subtotal	$	(20)	$	(125,942)	$	(4,698)	$	(130,660)
Cross-level counterparty netting							621
Cash collateral netting							45,634
Net fair value							$	(84,405)

As of December 2024
Assets
Interest rates	$	102	$	156,054	$	580	$	156,736
Credit	–		9,249		2,188		11,437
Currencies	–		114,500		174		114,674
Commodities	–		12,134		1,192		13,326
Equities	136		79,301		742		80,179
Gross fair value	238		371,238		4,876		376,352
Counterparty netting in levels	–		(279,215)		(750)		(279,965)
Subtotal	$	238	$	92,023	$	4,126	$	96,387
Cross-level counterparty netting							(947)
Cash collateral netting							(48,101)
Net fair value							$	47,339

Liabilities
Interest rates	$	(92)	$	(124,235)	$	(692)	$	(125,019)
Credit	–		(9,060)		(970)		(10,030)
Currencies	–		(114,488)		(127)		(114,615)
Commodities	–		(14,111)		(414)		(14,525)
Equities	(8)		(126,650)		(1,848)		(128,506)
Gross fair value	(100)		(388,544)		(4,051)		(392,695)
Counterparty netting in levels	–		279,215		750		279,965
Subtotal	$	(100)	$	(109,329)	$	(3,301)	$	(112,730)
Cross-level counterparty netting							947
Cash collateral netting							36,803
Net fair value							$	(74,980)

In the table above:

•Gross fair values exclude the effects of both counterparty netting and collateral netting, and therefore are not representative of the firm’s exposure.

•Counterparty netting is reflected in each level to the extent that receivable and payable balances are netted within the same level and is included in counterparty netting in levels. Where the counterparty netting is across levels, the netting is included in cross-level counterparty netting.

•Assets are shown as positive amounts and liabilities are shown as negative amounts.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of derivatives.

Significant Unobservable Inputs. The table below presents the amount of level 3 derivative assets (liabilities), and ranges, averages and medians of significant unobservable inputs used to value such derivatives.

As of December 2025

As of December 2024

$ in millions, except inputs

Amount or
Range

Average/
Median

Amount or
Range

Average/
Median

Interest rates, net

(104)

(112)

Correlation

(10)% to 95%

34%/25%

(10)% to 95%

60%/72%

Volatility (bps)

31 to 151

69/57

31 to 101

63/59

Credit, net

1,631

1,218

Credit spreads (bps)

9 to 1,065

135/106

8 to 1,328

134/91

Upfront credit points

0 to 100

19/10

(10) to 100

24/14

Recovery rates

25% to 60%

43%/40%

20% to 70%

46%/50%

Currencies, net

Correlation

0% to 70%

21%/3%

20% to 68%

34%/23%

Volatility

17% to 18%

17%/17%

17% to 17%

17%/17%

Commodities, net

735

778

Volatility

20% to 101%

35%/30%

21% to 120%

37%/33%

Natural gas spread

$(4.27) to $2.19

$(0.40)/$(0.33)

$(2.82) to $3.76

$(0.14)/ $(0.16)

Oil spread

N/A

$(6.42) to $22.10

$1.77/ $(3.80)

Electricity price

$2.98 to $489.82

$57.43/$35.57

$1.89 to $587.75

$52.18/ $32.68

Equities, net

(2,699)

(1,106)

Correlation

(70)% to 100%

58%/60%

(75)% to 100%

56%/52%

Volatility

2% to 102%

14%/9%

2% to 101%

15%/12%

In the table above:

•Assets are shown as positive amounts and liabilities are shown as negative amounts.

•Ranges represent the significant unobservable inputs that were used in the valuation of each type of derivative.

•Averages represent the arithmetic average of the inputs and are not weighted by the relative fair value or notional amount of the respective financial instruments. An average greater than the median indicates that the majority of inputs are below the average. For example, the difference between the average and the median for credit spreads indicates that the majority of the inputs fall in the lower end of the range.

•The ranges, averages and medians of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one derivative. For example, the highest correlation for interest rate derivatives is appropriate for valuing a specific interest rate derivative but may not be appropriate for valuing any other interest rate derivative. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 derivatives.

•Interest rates, currencies and equities derivatives are valued using option pricing models, credit derivatives are valued using option pricing, correlation and discounted cash flow models, and commodities derivatives are valued using option pricing and discounted cash flow models.

•The fair value of any one instrument may be determined using multiple valuation techniques. For example, option pricing models and discounted cash flow models are typically used together to determine fair value. Therefore, the level 3 balance encompasses both of these techniques.

•Correlation within currencies and equities includes cross-product type correlation.

•Natural gas spread represents the spread per million British thermal units of natural gas.

•Oil spread represents the spread per barrel of oil and refined products. Oil spread was not significant to the valuation of level 3 commodity derivatives as of December 2025.

•Electricity price represents the price per megawatt hour of electricity.

Range of Significant Unobservable Inputs. The following provides information about the ranges of significant unobservable inputs used to value the firm’s level 3 derivative instruments:

•Correlation. Ranges for correlation cover a variety of underliers both within one product type (e.g., equity index and equity single stock names) and across product types (e.g., correlation of an interest rate and a currency), as well as across regions. Generally, cross-product type correlation inputs are used to value more complex instruments and are lower than correlation inputs on assets within the same derivative product type.

•Volatility. Ranges for volatility cover numerous underliers across a variety of markets, maturities and strike prices. For example, volatility of equity indices is generally lower than volatility of single stocks.

•Credit spreads, upfront credit points and recovery rates. The ranges for credit spreads, upfront credit points and recovery rates cover a variety of underliers (index and single names), regions, sectors, maturities and credit qualities (high-yield and investment-grade). The broad range of this population gives rise to the width of the ranges of significant unobservable inputs.

•Commodity prices and spreads. The ranges for commodity prices and spreads cover variability in products, maturities and delivery locations.

Sensitivity of Fair Value Measurement to Changes in Significant Unobservable Inputs. The following is a description of the directional sensitivity of the firm’s level 3 fair value measurements to changes in significant unobservable inputs, in isolation, as of each period-end:

•Correlation. In general, for contracts where the holder benefits from the convergence of the underlying asset or index prices (e.g., interest rates, credit spreads, foreign exchange rates, inflation rates and equity prices), an increase in correlation results in a higher fair value measurement.

•Volatility. In general, for purchased options, an increase in volatility results in a higher fair value measurement.

•Credit spreads, upfront credit points and recovery rates. In general, the fair value of purchased credit protection increases as credit spreads or upfront credit points increase or recovery rates decrease. Credit spreads, upfront credit points and recovery rates are strongly related to distinctive risk factors of the underlying reference obligations, which include reference entity-specific factors, such as leverage, volatility and industry, market-based risk factors, such as borrowing costs or liquidity of the underlying reference obligation, and macroeconomic conditions.

•Commodity prices and spreads. In general, for contracts where the holder is receiving a commodity, an increase in the spread (price difference from a benchmark index due to differences in quality or delivery location) or price results in a higher fair value measurement.

Due to the distinctive nature of each of the firm’s level 3 derivatives, the interrelationship of inputs is not necessarily uniform within each product type.

Level 3 Rollforward. The table below presents a summary of the changes in fair value for level 3 derivatives.


	Year Ended December

$ in millions	2025		2024
Total level 3 derivatives, net
Beginning balance	$	825	$	810
Net realized gains/(losses)	(467)		(129)
Net unrealized gains/(losses)	(1,231)		25
Purchases	564		480
Sales	(833)		(885)
Settlements	531		573
Transfers into level 3	157		(25)
Transfers out of level 3	39		(24)
Ending balance	$	(415)	$	825

In the table above:

•Changes in fair value are presented for all derivative assets and liabilities that are classified in level 3 as of the end of the period.

•Net unrealized gains/(losses) relates to instruments that were still held at period-end.

•Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a derivative was transferred into level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.

•Positive amounts for transfers into level 3 and negative amounts for transfers out of level 3 represent net transfers of derivative assets. Negative amounts for transfers into level 3 and positive amounts for transfers out of level 3 represent net transfers of derivative liabilities.

•A derivative with level 1 and/or level 2 inputs is classified in level 3 in its entirety if it has at least one significant level 3 input.

•If there is one significant level 3 input, the entire gain or loss from adjusting only observable inputs (i.e., level 1 and level 2 inputs) is classified in level 3.

•Gains or losses that have been classified in level 3 resulting from changes in level 1 or level 2 inputs are frequently offset by gains or losses attributable to level 1 or level 2 derivatives and/or level 1, level 2 and level 3 trading cash instruments. As a result, gains/(losses) included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.

The table below presents information, by product type, for derivatives included in the summary table above.


	Year Ended December

$ in millions	2025		2024
Interest rates, net
Beginning balance	$	(112)	$	(439)
Net realized gains/(losses)	(67)		21
Net unrealized gains/(losses)	318		63
Purchases	14		4
Sales	(266)		(29)
Settlements	46		290
Transfers into level 3	(59)		(36)
Transfers out of level 3	22		14
Ending balance	$	(104)	$	(112)

Credit, net
Beginning balance	$	1,218	$	1,650
Net realized gains/(losses)	148		94
Net unrealized gains/(losses)	85		9
Purchases	38		85
Sales	–		(74)
Settlements	(123)		(354)
Transfers into level 3	268		79
Transfers out of level 3	(3)		(271)
Ending balance	$	1,631	$	1,218

Currencies, net
Beginning balance	$	47	$	42
Net realized gains/(losses)	(52)		(27)
Net unrealized gains/(losses)	(45)		1
Purchases	3		44
Sales	(5)		(9)
Settlements	81		(45)
Transfers into level 3	(4)		3
Transfers out of level 3	(3)		38
Ending balance	$	22	$	47

Commodities, net
Beginning balance	$	778	$	628
Net realized gains/(losses)	(113)		(340)
Net unrealized gains/(losses)	11		91
Purchases	16		192
Sales	(7)		(27)
Settlements	69		57
Transfers into level 3	3		14
Transfers out of level 3	(22)		163
Ending balance	$	735	$	778

Equities, net
Beginning balance	$	(1,106)	$	(1,071)
Net realized gains/(losses)	(383)		123
Net unrealized gains/(losses)	(1,600)		(139)
Purchases	493		155
Sales	(555)		(746)
Settlements	458		625
Transfers into level 3	(51)		(85)
Transfers out of level 3	45		32
Ending balance	$	(2,699)	$	(1,106)

Level 3 Rollforward Commentary for the Year Ended December 2025. The net realized and unrealized losses on level 3 derivatives of $1.70 billion (reflecting $467 million of net realized losses and $1.23 billion of net unrealized losses) for 2025 included losses of $1.65 billion reported in market making and $49 million reported in other principal transactions.

The net unrealized losses on level 3 derivatives for 2025 reflected losses on certain equity derivatives (principally due to an increase in equity prices), partially offset by gains on certain interest rate derivatives (principally due to a decrease in interest rates).

Transfers into level 3 derivatives during 2025 reflected transfers of certain credit derivatives assets from level 2 (principally due to certain unobservable credit spread inputs becoming significant to the valuation of these instruments), partially offset by transfers of certain equity derivative liabilities from level 2 (principally due to reduced transparency of certain volatility inputs used to value these instruments) and transfers of certain interest rate derivative liabilities from level 2 (principally due to certain unobservable volatility inputs becoming significant to the valuation of these instruments).

The drivers of transfers out of level 3 derivatives during 2025 were not material.

Level 3 Rollforward Commentary for the Year Ended December 2024. The net realized and unrealized losses on level 3 derivatives of $104 million (reflecting $129 million of net realized losses and $25 million of net unrealized gains) for 2024 included gains/(losses) of $(115) million reported in market making and $11 million reported in other principal transactions.

The net unrealized gains on level 3 derivatives for 2024 primarily reflected gains on certain commodity derivatives (principally due to the impact of changes in commodity prices) and gains on certain interest rate derivatives (principally due to an increase in interest rates), partially offset by losses on certain equity derivatives (principally due to the impact of changes in equity prices).

The drivers of transfers into level 3 derivatives during 2024 were not material.

Transfers out of level 3 derivatives during 2024 reflected transfers of certain credit derivative assets to level 2 (principally due to increased transparency of certain credit spread inputs used to value these instruments), partially offset by transfers of certain commodity derivative liabilities to level 2 (principally due to increased transparency of certain commodity price inputs used to value these instruments).

Investments

Fair Value by Level. The table below presents investments accounted for at fair value by level within the fair value hierarchy.


$ in millions	Level 1		Level 2		Level 3		Total
As of December 2025
Government and agency obligations:
U.S.	$	90,582	$	1,467	$	–	$	92,049
Non-U.S.	7,195		4		–		7,199
Corporate debt securities	139		2,621		4,279		7,039
Securities backed by real estate	–		6		306		312
Money market instruments	78		2,255		–		2,333
Other debt obligations	9		–		345		354
Equity securities	459		3,217		9,481		13,157
Subtotal	$	98,462	$	9,570	$	14,411	$	122,443
Investments in funds at NAV							1,739
Total investments							$	124,182
As of December 2024
Government and agency obligations:
U.S.	$	75,410	$	–	$	–	$	75,410
Non-U.S.	4,048		62		–		4,110
Corporate debt securities	137		2,629		4,510		7,276
Securities backed by real estate	–		7		562		569
Money market instruments	327		1,453		–		1,780
Other debt obligations	22		53		328		403
Equity securities	574		3,331		8,742		12,647
Subtotal	$	80,518	$	7,535	$	14,142	$	102,195
Investments in funds at NAV							2,547
Total investments							$	104,742

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of investments.

Significant Unobservable Inputs. The table below presents the amount of level 3 investments, and ranges and weighted averages of significant unobservable inputs used to value such investments.


	As of December 2025				As of December 2024
$ in millions	Amount or Range		Weighted Average		Amount or Range		Weighted Average
Corporate debt securities
Level 3 assets	$	4,279			$	4,510
Yield	6.8% to 19.1%		10.9	%	5.0% to 28.8%		12.2	%
Recovery rate	20.0% to 65.0%		57.4	%	5.8% to 41.0%		25.2	%
Duration (years)	0.7 to 6.5		3.6		0.3 to 9.0		3.6
Multiples	0.8x to 43.0x		7.0x		1.1x to 34.2x		6.5x
Securities backed by real estate
Level 3 assets	$	306			$	562
Yield	8.9% to 30.8%		13.3	%	9.5% to 16.0%		13.6	%
Duration (years)	0.2 to 2.0		2.0		1.1 to 2.8		2.8
Other debt obligations
Level 3 assets	$	345			$	328
Yield	4.4% to 7.6%		6.9	%	7.0% to 8.7%		7.7	%
Equity securities
Level 3 assets	$	9,481			$	8,742
Multiples	0.4x to 25.0x		8.6x		0.4x to 34.2x		8.6x
Discount rate/yield	6.0% to 42.0%		12.3	%	6.0% to 27.9%		13.3	%
Capitalization rate	4.4% to 11.5%		5.5	%	4.4% to 9.1%		5.4	%

In the table above:

•Ranges represent the significant unobservable inputs that were used in the valuation of each type of investment.

•Weighted averages are calculated by weighting each input by the relative fair value of the investment.

•The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one investment. For example, the highest multiple for private equity securities is appropriate for valuing a specific private equity security but may not be appropriate for valuing any other private equity security. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 investments.

•Increases in yield, discount rate, capitalization rate or duration used in the valuation of level 3 investments would have resulted in a lower fair value measurement, while increases in recovery rate or multiples would have resulted in a higher fair value measurement as of both December 2025 and December 2024. Due to the distinctive nature of each level 3 investment, the interrelationship of inputs is not necessarily uniform within each product type.

•Corporate debt securities, securities backed by real estate and other debt obligations are valued using discounted cash flows, and equity securities are valued using market comparables and discounted cash flows.

•The fair value of any one instrument may be determined using multiple valuation techniques. For example, market comparables and discounted cash flows may be used together to determine fair value. Therefore, the level 3 balance encompasses both of these techniques.

Level 3 Rollforward. The table below presents a summary of the changes in fair value for level 3 investments.


	Year Ended December

$ in millions	2025		2024
Beginning balance	$	14,142	$	17,138
Net realized gains/(losses)	373		342
Net unrealized gains/(losses)	186		(287)
Purchases	1,189		1,395
Sales	(1,165)		(916)
Settlements	(1,380)		(2,322)
Transfers into level 3	1,930		953
Transfers out of level 3	(864)		(2,161)
Ending balance	$	14,411	$	14,142

In the table above:

•Changes in fair value are presented for all investments that are classified in level 3 as of the end of the period.

•Net unrealized gains/(losses) relates to investments that were still held at period-end.

•Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If an investment was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.

The table below presents information, by product type, for investments included in the summary table above.


	Year Ended December

$ in millions	2025		2024
Corporate debt securities
Beginning balance	$	4,510	$	6,533
Net realized gains/(losses)	180		179
Net unrealized gains/(losses)	55		(169)
Purchases	390		600
Sales	(261)		(306)
Settlements	(631)		(1,672)
Transfers into level 3	464		462
Transfers out of level 3	(428)		(1,117)
Ending balance	$	4,279	$	4,510

Securities backed by real estate
Beginning balance	$	562	$	687
Net realized gains/(losses)	7		52
Net unrealized gains/(losses)	(136)		(82)
Purchases	35		53
Sales	(89)		(33)
Settlements	(51)		(114)
Transfers into level 3	7		1
Transfers out of level 3	(29)		(2)
Ending balance	$	306	$	562

Other debt obligations
Beginning balance	$	328	$	244
Net realized gains/(losses)	17		5
Net unrealized gains/(losses)	3		–
Purchases	74		141

Settlements	(77)		(31)
Transfers out of level 3	–		(31)
Ending balance	$	345	$	328

Equity securities
Beginning balance	$	8,742	$	9,674
Net realized gains/(losses)	169		106
Net unrealized gains/(losses)	264		(36)
Purchases	690		601
Sales	(815)		(577)
Settlements	(621)		(505)
Transfers into level 3	1,459		490
Transfers out of level 3	(407)		(1,011)
Ending balance	$	9,481	$	8,742

Level 3 Rollforward Commentary for the Year Ended December 2025. The net realized and unrealized gains on level 3 investments of $559 million (reflecting $373 million of net realized gains and $186 million of net unrealized gains) for 2025 included gains of $287 million reported in other principal transactions and $272 million reported in interest income.

The net unrealized gains on level 3 investments for 2025 primarily reflected gains on certain equity securities (principally due to the impact of foreign exchange rates and corporate performance), partially offset by losses on certain securities backed by real estate (principally due to losses on the underlying investments).

Transfers into level 3 investments during 2025 primarily reflected transfers of certain equity securities from level 2 (principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments) and transfers of certain corporate debt securities from level 2 (principally due to certain unobservable yield inputs becoming significant to the valuation of these instruments, and reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments).

Transfers out of level 3 investments during 2025 primarily reflected transfers of certain corporate debt securities to level 2 (principally due to certain unobservable yield inputs no longer being significant to the valuation of these instruments) and transfers of certain equity securities to level 2 (principally due to increased price transparency as a result of market evidence, including market transactions in these instruments).

Level 3 Rollforward Commentary for the Year Ended December 2024. The net realized and unrealized gains on level 3 investments of $55 million (reflecting $342 million of net realized gains and $287 million of net unrealized losses) for 2024 included gains/(losses) of $(224) million reported in other principal transactions and $279 million reported in interest income.

The net unrealized losses on level 3 investments for 2024 primarily reflected losses on certain corporate debt securities (principally due to corporate performance and company-specific events).

Transfers into level 3 investments during 2024 primarily reflected transfers of certain equity securities from level 2 (principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments) and transfers of certain corporate debt securities from level 2 (principally due to certain unobservable yield inputs becoming significant to the valuation of these instruments).

Transfers out of level 3 investments during 2024 primarily reflected transfers of certain corporate debt securities to level 2 (principally due to certain unobservable yield inputs no longer being significant to the valuation of these instruments and increased price transparency as a result of market evidence, including market transactions in these instruments) and transfers of certain equity securities to level 2 (principally due to increased price transparency as a result of market evidence, including market transactions in these instruments).

Loans

Fair Value by Level. The table below presents loans held for investment accounted for at fair value under the fair value option by level within the fair value hierarchy.


$ in millions	Level 1		Level 2		Level 3		Total
As of December 2025
Loan Type
Corporate	$	–	$	36	$	290	$	326
Real estate:
Commercial	–		356		64		420
Residential	–		3,222		35		3,257
Other collateralized	–		717		138		855
Other	–		28		19		47
Total	$	–	$	4,359	$	546	$	4,905
As of December 2024
Loan Type
Corporate	$	–	$	64	$	403	$	467
Real estate:
Commercial	–		349		75		424
Residential	–		3,684		42		3,726
Other collateralized	–		648		135		783
Other	–		32		28		60
Total	$	–	$	4,777	$	683	$	5,460

The gains/(losses) as a result of changes in the fair value of loans held for investment for which the fair value option was elected were $115 million for 2025 and were not material for 2024. These gains/(losses) were included in other principal transactions.

Significant Unobservable Inputs. The table below presents the amount of level 3 loans, and ranges and weighted averages of significant unobservable inputs used to value such loans.


	As of December 2025				As of December 2024
$ in millions	Amount or Range		Weighted Average		Amount or Range		Weighted Average
Corporate
Level 3 assets	$	290			$	403
Yield	6.4% to 19.9%		18.0	%	11.6% to 22.4%		17.5	%
Recovery rate	32.5% to 94.9%		65.4	%	37.2% to 95.6%		72.9	%
Duration (years)	3.1 to 4.4		3.3		0.6 to 9.3		6.0
Real estate
Level 3 assets	$	99			$	117
Yield	N/A		N/A		6.1% to 10.9%		6.7	%
Recovery rate	69.0% to 99.2%		76.1	%	3.3% to 99.2%		73.7	%
Duration (years)	N/A		N/A		0.2 to 3.6		0.6
Other collateralized
Level 3 assets	$	138			$	135
Yield	5.7% to 6.3%		5.7	%	6.2% to 6.8%		6.3	%

Level 3 other loans were not material as of both December 2025 and December 2024, and therefore, are not included in the table above.

In the table above:

•Ranges represent the significant unobservable inputs that were used in the valuation of each type of loan.

•Weighted averages are calculated by weighting each input by the relative fair value of the loan.

•The ranges and weighted averages of these inputs are not representative of the appropriate inputs to use when calculating the fair value of any one loan. For example, the highest yield for corporate loans is appropriate for valuing a specific corporate loan but may not be appropriate for valuing any other corporate loan. Accordingly, the ranges of inputs do not represent uncertainty in, or possible ranges of, fair value measurements of level 3 loans.

•Increases in yield or duration used in the valuation of level 3 loans would have resulted in a lower fair value measurement, while increases in recovery rate would have resulted in a higher fair value measurement as of both December 2025 and December 2024. Due to the distinctive nature of each level 3 loan, the interrelationship of inputs is not necessarily uniform within each product type.

•Loans are valued using discounted cash flows.

•The significant unobservable inputs for yield and duration related to real estate loans as of December 2025 did not have a range (and there was no weighted average), as each pertained to a single position. Therefore, such unobservable inputs are not included in the table above.

Level 3 Rollforward. The table below presents a summary of the changes in fair value for level 3 loans.


	Year Ended December

$ in millions	2025		2024
Beginning balance	$	683	$	823
Net realized gains/(losses)	28		33
Net unrealized gains/(losses)	(9)		(41)
Purchases	96		135
Sales	(17)		(61)
Settlements	(270)		(286)
Transfers into level 3	62		124
Transfers out of level 3	(27)		(44)
Ending balance	$	546	$	683

In the table above:

•Changes in fair value are presented for loans that are classified in level 3 as of the end of the period.

•Net unrealized gains/(losses) relates to loans that were still held at period-end.

•Purchases includes originations and secondary purchases.

•Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a loan was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.

The table below presents information, by loan type, for loans included in the summary table above.


	Year Ended December

$ in millions	2025		2024
Corporate
Beginning balance	$	403	$	344
Net realized gains/(losses)	3		12
Net unrealized gains/(losses)	(6)		(26)
Purchases	36		127
Sales	–		(5)
Settlements	(125)		(160)
Transfers into level 3	6		111
Transfers out of level 3	(27)		–
Ending balance	$	290	$	403

Real estate
Beginning balance	$	117	$	261
Net realized gains/(losses)	5		9
Net unrealized gains/(losses)	8		(10)
Purchases	3		2
Sales	(13)		(52)
Settlements	(21)		(93)


Ending balance	$	99	$	117

Other collateralized
Beginning balance	$	135	$	136
Net realized gains/(losses)	14		4
Net unrealized gains/(losses)	(9)		1
Purchases	57		6
Sales	–		(3)
Settlements	(115)		(22)
Transfers into level 3	56		13

Ending balance	$	138	$	135

Other
Beginning balance	$	28	$	82
Net realized gains/(losses)	6		8
Net unrealized gains/(losses)	(2)		(6)

Sales	(4)		(1)
Settlements	(9)		(11)

Transfers out of level 3	–		(44)
Ending balance	$	19	$	28

Level 3 Rollforward Commentary for the Year Ended December 2025. The net realized and unrealized gains on level 3 loans of $19 million (reflecting $28 million of net realized gains and $9 million of net unrealized losses) for 2025 included gains/(losses) of $(2) million reported in other principal transactions and $21 million reported in interest income.

The drivers of the net unrealized losses on level 3 loans for 2025 were not material.

The drivers of both transfers into and transfers out of level 3 loans during 2025 were not material.

Level 3 Rollforward Commentary for the Year Ended December 2024. The net realized and unrealized losses on level 3 loans of $8 million (reflecting $33 million of net realized gains and $41 million of net unrealized losses) for 2024 included gains/(losses) of $(13) million reported in other principal transactions and $5 million reported in interest income.

The drivers of the net unrealized losses on level 3 loans for 2024 were not material.

Transfers into level 3 loans during 2024 primarily reflected transfers of certain corporate loans from level 2 (principally due to reduced price transparency as a result of a lack of market evidence, including fewer market transactions in these instruments).

The drivers of the transfers out of level 3 loans during 2024 were not material.

Other Financial Assets and Liabilities

Fair Value by Level. The table below presents, by level within the fair value hierarchy, other financial assets and liabilities at fair value, substantially all of which are accounted for at fair value under the fair value option.


$ in millions	Level 1		Level 2		Level 3		Total
As of December 2025
Assets
Resale agreements	$	–	$	126,007	$	–	$	126,007
Securities borrowed	–		51,581		–		51,581
Customer and other receivables	–		315		–		315
Other assets	–		–		180		180
Total	$	–	$	177,903	$	180	$	178,083

Liabilities
Deposits	$	–	$	(73,344)	$	(3,225)	$	(76,569)
Repurchase agreements	–		(223,384)		–		(223,384)
Securities loaned	–		(11,995)		–		(11,995)
Other secured financings	–		(27,340)		(493)		(27,833)
Unsecured borrowings:
Short-term	–		(52,093)		(7,665)		(59,758)
Long-term	–		(96,858)		(15,825)		(112,683)
Other liabilities	–		(6)		(105)		(111)
Total	$	–	$	(485,020)	$	(27,313)	$	(512,333)

As of December 2024
Assets
Resale agreements	$	–	$	179,793	$	–	$	179,793
Securities borrowed	–		46,902		–		46,902
Customer and other receivables	–		23		–		23
Other assets	–		–		194		194
Total	$	–	$	226,718	$	194	$	226,912

Liabilities
Deposits	$	–	$	(41,810)	$	(3,045)	$	(44,855)
Repurchase agreements	–		(274,380)		–		(274,380)
Securities loaned	–		(10,246)		–		(10,246)
Other secured financings	–		(27,434)		(551)		(27,985)
Unsecured borrowings:
Short-term	–		(45,073)		(5,294)		(50,367)
Long-term	–		(75,810)		(13,379)		(89,189)
Other liabilities	–		(8)		(76)		(84)
Total	$	–	$	(474,761)	$	(22,345)	$	(497,106)

In the table above, assets are shown as positive amounts and liabilities are shown as negative amounts.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of other financial assets and liabilities.

Significant Unobservable Inputs. See below for information about the significant unobservable inputs used to value level 3 other financial assets and liabilities at fair value as of both December 2025 and December 2024.

Other Secured Financings. The ranges and weighted averages of significant unobservable inputs used to value level 3 other secured financings are presented below. These ranges and weighted averages exclude unobservable inputs that are only relevant to a single instrument, and therefore are not meaningful.

As of December 2025:

•Yield: 2.2% to 14.2% (weighted average: 10.0%)

•Duration: 2.7 to 3.6 years (weighted average: 3.2 years)

•Volatility: 6.4% to 7.3% (weighted average: 7.3%)

As of December 2024:

•Yield: 3.8% to 12.3% (weighted average: 8.9%)

•Duration: 2.0 to 5.4 years (weighted average: 2.9 years)

Generally, increases in yield or duration or decreases in volatility, in isolation, would have resulted in a lower fair value measurement as of period-end. Due to the distinctive nature of each of level 3 other secured financings, the interrelationship of inputs is not necessarily uniform across such financings. See Note 11 for further information about other secured financings.

Deposits, Unsecured Borrowings and Other Assets and Liabilities. Substantially all of the firm’s deposits, unsecured short- and long-term borrowings, and other assets and liabilities that are classified in level 3 are hybrid financial instruments. The significant unobservable inputs used to value these hybrid financial instruments include volatility, correlation and credit spreads of the firm, which primarily relate to the embedded derivative component of such instruments. These unobservable inputs are incorporated in the firm’s derivative disclosures. See Note 12 for further information about other assets, Note 13 for further information about deposits, Note 14 for further information about unsecured borrowings and Note 15 for further information about other liabilities.

Level 3 Rollforward. The table below presents a summary of the changes in fair value for level 3 other financial assets and liabilities accounted for at fair value.


	Year Ended December

$ in millions		2025		2024
Assets
Beginning balance		$	194	$	187

Net unrealized gains/(losses)		(14)		18

Sales		–		(11)
Ending balance		$	180	$	194

Liabilities
Beginning balance		$	(22,345)	$	(24,275)
Net realized gains/(losses)		(303)		(210)
Net unrealized gains/(losses)		(1,684)		715
Issuances		(15,452)		(9,768)
Settlements		8,527		11,040
Transfers into level 3		(512)		(1,835)
Transfers out of level 3		4,456		1,988
Ending balance		$	(27,313)	$	(22,345)

In the table above:

•Changes in fair value are presented for all other financial assets and liabilities that are classified in level 3 as of the end of the period.

•Net unrealized gains/(losses) relates to other financial assets and liabilities that were still held at period-end.

•Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. If a financial instrument was transferred to level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.

•For level 3 other financial assets, increases are shown as positive amounts, while decreases are shown as negative amounts. For level 3 other financial liabilities, increases are shown as negative amounts, while decreases are shown as positive amounts.

•Level 3 other financial assets and liabilities are frequently economically hedged with trading assets and liabilities. Accordingly, gains or losses that are classified in level 3 can be partially offset by gains or losses attributable to level 1, 2 or 3 trading assets and liabilities. As a result, gains or losses included in the level 3 rollforward below do not necessarily represent the overall impact on the firm’s results of operations, liquidity or capital resources.

The table below presents information, by the consolidated balance sheet line items, for other financial liabilities included in the summary table above.


	Year Ended December

$ in millions		2025		2024
Deposits
Beginning balance		$	(3,045)	$	(2,737)
Net realized gains/(losses)		(8)		–
Net unrealized gains/(losses)		(329)		(96)
Issuances		(914)		(1,086)
Settlements		1,051		928
Transfers into level 3		(67)		(173)
Transfers out of level 3		87		119
Ending balance		$	(3,225)	$	(3,045)

Other secured financings
Beginning balance		$	(551)	$	(2,022)
Net realized gains/(losses)		2		(1)
Net unrealized gains/(losses)		(28)		12
Issuances		(102)		(51)
Settlements		186		1,615
Transfers into level 3		–		(104)

Ending balance		$	(493)	$	(551)

Unsecured short-term borrowings
Beginning balance		$	(5,294)	$	(5,589)
Net realized gains/(losses)		(98)		(6)
Net unrealized gains/(losses)		(279)		9
Issuances		(6,688)		(4,883)
Settlements		4,459		4,700
Transfers into level 3		(240)		(101)
Transfers out of level 3		475		576
Ending balance		$	(7,665)	$	(5,294)

Unsecured long-term borrowings
Beginning balance		$	(13,379)	$	(13,848)
Net realized gains/(losses)		(199)		(203)
Net unrealized gains/(losses)		(1,040)		787
Issuances		(7,727)		(3,748)
Settlements		2,831		3,797
Transfers into level 3		(205)		(1,457)
Transfers out of level 3		3,894		1,293
Ending balance		$	(15,825)	$	(13,379)

Other liabilities
Beginning balance		$	(76)	$	(79)
Net unrealized gains/(losses)		(8)		3
Issuances		(21)		–

Ending balance		$	(105)	$	(76)

Level 3 Rollforward Commentary for the Year Ended December 2025. The net realized and unrealized losses on level 3 other financial liabilities of $1.99 billion (reflecting $303 million of net realized losses and $1.68 billion of net unrealized losses) for 2025 included losses of $1.67 billion reported in market making, $116 million reported in other principal transactions and $2 million reported in interest expense in the consolidated statements of earnings, and $202 million reported in debt valuation adjustment in the consolidated statements of comprehensive income.

The net unrealized losses on level 3 other financial liabilities for 2025 primarily reflected losses on certain hybrid financial instruments included in unsecured long-term borrowings (principally due to an increase in equity prices and a decrease in interest rates), losses on certain hybrid financial instruments included in deposits and unsecured short-term borrowings (in each case, principally due to an increase in equity prices).

Transfers into level 3 other financial liabilities during 2025 primarily reflected transfers of certain hybrid financial instruments included in unsecured short- and long-term borrowings from level 2 (principally due to reduced transparency of certain volatility inputs used to value these instruments).

Transfers out of level 3 other financial liabilities during 2025 primarily reflected transfers of certain hybrid financial instruments included in long-term borrowings to level 2 (principally due to increased transparency of certain credit spread and volatility inputs used to value these instruments) and transfers of certain hybrid financial instruments included in unsecured short-term borrowings to level 2 (principally due to increased transparency of certain volatility inputs used to value these instruments).

Level 3 Rollforward Commentary for the Year Ended December 2024. The net realized and unrealized gains on level 3 other financial liabilities of $505 million (reflecting $210 million of net realized losses and $715 million of net unrealized gains) for 2024 included gains/(losses) of $491 million reported in market making, $(42) million reported in other principal transactions and $(1) million reported in interest expense in the consolidated statements of earnings, and $57 million reported in debt valuation adjustment in the consolidated statements of comprehensive income.

The net unrealized gains on level 3 other financial liabilities for 2024 primarily reflected gains on certain hybrid financial instruments included in unsecured long-term borrowings (principally due to the impact of increases in interest rates and changes in foreign exchange rates), partially offset by losses on certain hybrid financial instruments included in deposits (principally due to an increase in equity prices).

Transfers into level 3 other financial liabilities during 2024 primarily reflected transfers of certain hybrid financial instruments included in unsecured long-term borrowings from level 2 (principally due to reduced transparency of certain credit spreads and volatility inputs used to value these instruments).

Transfers out of level 3 other financial liabilities during 2024 primarily reflected transfers of certain hybrid financial instruments included in long- and short-term borrowings to level 2 (principally due to increased transparency of certain volatility inputs used to value these instruments).