v3.25.4
Securitization Activities
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Securitization Activities
Securitization Activities
The firm securitizes residential and commercial mortgages, corporate bonds, loans and other types of financial assets by selling these assets to securitization vehicles (e.g., trusts, corporate entities and limited liability companies) or through a resecuritization. The firm acts as underwriter of the beneficial interests that are sold to investors. The firm’s residential mortgage securitizations are primarily in connection with government agency securitizations.
The firm accounts for a securitization as a sale when it has relinquished control over the transferred financial assets. Prior to securitization, the firm generally accounts for assets pending transfer at fair value and therefore does not typically recognize significant gains or losses upon the transfer of assets. Net revenues from underwriting activities are recognized in connection with the sales of the underlying beneficial interests to investors.
The firm generally receives cash in exchange for the transferred assets but may also have continuing involvement with the transferred financial assets, including ownership of beneficial interests in securitized financial assets, primarily in the form of debt instruments. The firm may also purchase senior or subordinated securities issued by securitization vehicles (which are typically VIEs) in connection with secondary market-making activities.
The primary risks included in beneficial interests and other interests from the firm’s continuing involvement with securitization vehicles are the performance of the underlying collateral, the position of the firm’s investment in the capital structure of the securitization vehicle and the market yield for the security. Interests accounted for at fair value are primarily classified in level 2 of the fair value hierarchy. Interests not accounted for at fair value are carried at amounts that approximate fair value. See Note 4 for further information about fair value measurements.


The table below presents the amount of financial assets securitized and the cash flows received on retained interests in securitization entities in which the firm had continuing involvement as of the end of the period.
Year Ended December
$ in millions202520242023
Residential mortgages$55,717 $33,210 $20,276 
Commercial mortgages23,512 7,238 4,446 
Other financial assets3,965 2,782 5,951 
Total financial assets securitized$83,194 $43,230 $30,673 
Retained interests cash flows$783 $722 $493 
The firm securitized assets of $762 million during 2025, $364 million during 2024 and $369 million during 2023, in a non-cash exchange for loans and investments.
The table below presents information about nonconsolidated securitization entities to which the firm sold assets and had continuing involvement as of the end of the period.
$ in millionsOutstanding
 Principal
 Amount		Retained
 Interests		Purchased
 Interests
As of December 2025
U.S. government agency-issued CMOs$62,433 $3,169 $– 
Other residential mortgage-backed38,605 1,630 37 
Other commercial mortgage-backed77,967 1,148 39 
Corporate debt and other asset-backed13,904 511 14 
Total$192,909 $6,458 $90 
As of December 2024
U.S. government agency-issued CMOs$34,049 $3,053 $– 
Other residential mortgage-backed33,069 1,357 14 
Other commercial mortgage-backed59,562 945 57 
Corporate debt and other asset-backed12,059 493 5 
Total$138,739 $5,848 $76 
In the table above:
•CMOs represents collateralized mortgage obligations.
•The outstanding principal amount is presented for the purpose of providing information about the size of the securitization entities and is not representative of the firm’s risk of loss.
•The firm’s risk of loss from retained or purchased interests is limited to the carrying value of these interests.
•Purchased interests represent senior and subordinated interests, purchased in connection with secondary market-making activities, in securitization entities in which the firm also holds retained interests.
•Substantially all of the total outstanding principal amount and total retained interests relate to securitizations during 2019 and thereafter.
•The fair value of retained interests was $6.37 billion as of December 2025 and $5.78 billion as of December 2024.
In addition to the interests in the table above, the firm had other continuing involvement in the form of derivative transactions and commitments with certain nonconsolidated VIEs. The carrying value of these derivatives and commitments was a net asset of $1.48 billion as of December 2025 and $847 million as of December 2024, and the notional amount of these derivatives and commitments was $4.13 billion as of December 2025 and $2.78 billion as of December 2024. The notional amounts of these derivatives and commitments are included in maximum exposure to loss in the nonconsolidated VIE table in Note 17. Additionally, the firm provided seller financing of $340 million (in connection with the sale of $425 million of loans) during 2025 and approximately $2.12 billion (in connection with the sale of $4.44 billion of loans) during 2024. The principal and interest repayments received from the seller financings were $596 million for 2025, $2.85 billion for 2024 and $1.00 billion for 2023. The total outstanding principal amount of seller financings were $1.18 billion as of December 2025 and $1.32 billion as of December 2024.
The table below presents information about the weighted average key economic assumptions used in measuring the fair value of mortgage-backed retained interests.
As of December
$ in millions20252024
Fair value of retained interests$5,865 $5,292 
Weighted average life (years)6.26.1
Constant prepayment rate12.4%10.0%
Impact of 10% adverse change$(53)$(57)
Impact of 20% adverse change$(102)$(110)
Discount rate8.6%7.8%
Impact of 10% adverse change$(171)$(136)
Impact of 20% adverse change$(331)$(281)

In the table above:
•Amounts do not reflect the benefit of other financial instruments that are held to mitigate risks inherent in these retained interests.
•Changes in fair value based on an adverse variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value is not usually linear.
•The impact of a change in a particular assumption is calculated independently of changes in any other assumption. In practice, simultaneous changes in assumptions might magnify or counteract the sensitivities disclosed above.
•The constant prepayment rate is included only for positions for which it is a key assumption in the determination of fair value.
•The discount rate for retained interests that relate to U.S. government agency-issued CMOs does not include any credit loss. Expected credit loss assumptions are reflected in the discount rate for the remainder of retained interests.
The firm had other retained interests not reflected in the table above with a fair value of $506 million and a weighted average life of 4.1 years as of December 2025, and a fair value of $491 million and a weighted average life of 5.0 years as of December 2024. Due to the nature and fair value of certain of these retained interests, the weighted average assumptions for constant prepayment and discount rates and the related sensitivity to adverse changes were not meaningful as of both December 2025 and December 2024. The firm’s maximum exposure to adverse changes in the value of these interests was the carrying value of $511 million as of December 2025 and $493 million as of December 2024.