Management’s discussion and analysis 110 JPMorgan Chase & Co. /2013 Annual Report 2012 compared with 2011 Net loss was $2.0 billion, compared with a net income of $919 million in the prior year.
Private Equity reported net income of $292 million, compared with net income of $391 million in the prior year.
Net revenue was $601 million, compared with $836 million in the prior year, due to lower unrealized and realized gains on private investments, partially offset by higher unrealized gains on public securities.
Noninterest expense was $145 million, down from $238 million in the prior year.
Treasury and CIO reported a net loss of $2.1 billion, compared with net income of $1.3 billion in the prior year.
Net revenue was a loss of $3.1 billion, compared with net revenue of $3.2 billion in the prior year.
The current year loss reflected $5.8 billion of losses incurred by CIO from the synthetic credit portfolio for the six months ended June 30, 2012, and $449 million of losses from the retained index credit derivative positions for the three months ended September 30, 2012.
These losses were partially offset by securities gains of $2.0 billion.
The current year revenue reflected $888 million of extinguishment gains related to the redemption of trust preferred securities, which are included in all other income in the above table.
The extinguishment gains were related to adjustments applied to the cost basis of the trust preferred securities during the period they were in a qualified hedge accounting relationship.
Net interest income was negative $683 million, compared with $1.4 billion in the prior year, primarily reflecting the impact of lower portfolio yields and higher deposit balances across the Firm.
Other Corporate reported a net loss of $221 million, compared with a net loss of $821 million in the prior year.
Noninterest revenue of $1.8 billion was driven by a $1.1 billion benefit for the Washington Mutual bankruptcy settlement, which is included in all other income in the above table, and a $665 million gain from the recovery on a Bear Stearns-related subordinated loan.
Noninterest expense of $3.8 billion was up $1.0 billion compared with the prior year.
The current year included expense of $3.7 billion for additional litigation reserves, largely for mortgage-related matters.
The prior year included expense of $3.2 billion for additional litigation reserves.
Treasury and CIO overview Treasury and CIO are predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding and structural interest rate and foreign exchange risks, as well as executing the Firm’s capital plan.
The risks managed by Treasury and CIO arise from the activities undertaken by the Firm’s four major reportable business segments to serve their respective client bases, which generate both on- and off-balance sheet assets and liabilities.
CIO achieves the Firm’s asset-liability management objectives generally by investing in high-quality securities that are managed for the longer-term as part of the Firm’s AFS and HTM investment securities portfolios (the “investment securities portfolio”).
CIO also uses derivatives, as well as securities that are not classified as AFS or HTM, to meet the Firm’s asset-liability management objectives.
For further information on derivatives, see Note 6 on pages 220–233 of this Annual Report.
For further information about securities not classified within the AFS or HTM portfolio, see Note 3 on pages 195–215 of this Annual Report.
The Treasury and CIO investment securities portfolio primarily consists of U. S.  and non-U.
S.  government securities, agency and non-agency mortgage-backed securities, other asset-backed securities, corporate debt securities and obligations of U. S.  states and municipalities.
At December 31, 2013, the total Treasury and CIO investment securities portfolio was $347.6 billion; the average credit rating of the securities comprising the Treasury and CIO investment securities portfolio was AA+ (based upon external ratings where available and where not available, based primarily upon internal ratings that correspond to ratings as defined by S&P and Moody’s).
See Note 12 on pages 249–254 of this Annual Report for further information on the details of the Firm’s investment securities portfolio.
For further information on liquidity and funding risk, see Liquidity Risk Management on pages 168–173 of this Annual Report.
For information on interest rate, foreign exchange and other risks, Treasury and CIO Value-at-risk (“VaR”) and the Firm’s structural interest rate-sensitive revenue at risk, see Market Risk Management on pages 142–148 of this Annual Report.
Selected income statement and balance sheet data
## Table 0 ##
(a) Period-end investment securities included held-to-maturity balance of $24.0 billion at December 31, 2013.
Held-to-maturity balances for the other periods were not material.
Note 13 – Securities financing activities JPMorgan Chase enters into resale agreements, repurchase agreements, securities borrowed transactions and securities loaned transactions (collectively, “securities financing agreements”) primarily to finance the Firm’s inventory positions, acquire securities to cover short positions, accommodate customers’ financing needs, and settle other securities obligations.
Securities financing agreements are treated as collateralized financings on the Firm’s Consolidated Balance Sheets.
Resale and repurchase agreements are generally carried at the amounts at which the securities will be subsequently sold or repurchased.
Securities borrowed and securities loaned transactions are generally carried at the amount of cash collateral advanced or received.
Where appropriate under applicable accounting guidance, resale and repurchase agreements with the same counterparty are reported on a net basis.
For further discussion of the offsetting of assets and liabilities, see Note 1 on pages 189– 191 of this Annual Report.
Fees received and paid in connection with securities financing agreements are recorded in interest income and interest expense on the Consolidated Statements of Income.
The Firm has elected the fair value option for certain securities financing agreements.
For further information regarding the fair value option, see Note 4 on pages 215– 218 of this Annual Report.
The securities financing agreements for which the fair value option has been elected are reported within securities purchased under resale agreements; securities loaned or sold under repurchase agreements; and securities borrowed on the Consolidated Balance Sheets.
Generally, for agreements carried at fair value, current-period interest accruals are recorded within interest income and interest expense, with changes in fair value reported in principal transactions revenue.
However, for financial instruments containing embedded derivatives that would be separately accounted for in accordance with accounting guidance for hybrid instruments, all changes in fair value, including any interest elements, are reported in principal transactions revenue.
The following table presents as of December 31, 2013 and 2012, the gross and net securities purchased under resale agreements and securities borrowed.
Securities purchased under resale agreements have been presented on the Consolidated Balance Sheets net of securities sold under repurchase agreements where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement, and where the other relevant criteria have been met.
Where such a legal opinion has not been either sought or obtained, the securities purchased under resale agreements are not eligible for netting and are shown separately in the table below.
Securities borrowed are presented on a gross basis on the Consolidated Balance Sheets.
## Table 1 ##
(a) At December 31, 2013 and 2012, included securities purchased under resale agreements of $25.1 billion and $24.3 billion, respectively, accounted for at fair value.
(b) At December 31, 2013 and 2012, included securities borrowed of $3.7 billion and $10.2 billion, respectively, accounted for at fair value.
(c) Included $26.9 billion and $28.4 billion at December 31, 2013 and 2012, respectively, of securities borrowed where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
The prior period amounts have been revised with a corresponding impact in the table below.
This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
Off–balance sheet lending-related financial instruments, guarantees and other commitments
## Table 2 ##
(a) At December 31, 2013 and 2012, reflects the contractual amount net of risk participations totaling $476 million and $473 million, respectively, for other unfunded commitments to extend credit; $14.8 billion and $16.6 billion, respectively, for standby letters of credit and other financial guarantees; and $622 million and $690 million, respectively, for other letters of credit.
In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(b) At December 31, 2013 and 2012, included credit enhancements and bond and commercial paper liquidity commitments to U. S.  states and municipalities, hospitals and other non-profit entities of $18.9 billion and $21.3 billion, respectively, within other unfunded commitments to extend credit; and $17.2 billion and $23.2 billion, respectively, within standby letters of credit and other financial guarantees.
These commitments also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 16 on pages 288–299 of this Annual Report.
(c) At December 31, 2013 and 2012, included unissued standby letters of credit commitments of $42.8 billion and $44.4 billion, respectively.
(d) At December 31, 2013 and 2012, collateral held by the Firm in support of securities lending indemnification agreements was $176.4 billion and $165.1 billion, respectively.
Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation and Development (“OECD”) and U. S.  government agencies.
(e) At December 31, 2013 and 2012, the amount of commitments related to forward-starting reverse repurchase agreements and securities borrowing agreements were $9.9 billion and $13.2 billion, respectively.
Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular-way settlement periods were $28.3 billion and $21.7 billion, at December 31, 2013 and 2012, respectively.
(f) At December 31, 2013 and 2012, included unfunded commitments of $215 million and $370 million, respectively, to third-party private equity funds; and $1.9 billion and $1.5 billion, respectively, to other equity investments.
These commitments included $184 million and $333 million, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3 on pages 195–215 of this Annual Report.
In addition, at both December 31, 2013 and 2012, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.5 billion.
(g) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivativerelated products, the carrying value represents the fair value.

<table><tr><td>As of or for the year ended December 31, (in millions)</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Securities gains</td><td>$659</td><td>$2,028</td><td>$1,385</td></tr><tr><td>Investment securities portfolio (average)</td><td>353,712</td><td>358,029</td><td>330,885</td></tr><tr><td>Investment securities portfolio (period–end)<sup>(a)</sup></td><td>347,562</td><td>365,421</td><td>355,605</td></tr><tr><td>Mortgage loans (average)</td><td>5,145</td><td>10,241</td><td>13,006</td></tr><tr><td>Mortgage loans (period-end)</td><td>3,779</td><td>7,037</td><td>13,375</td></tr></table>
<table><tr><td></td><td colspan="3">2013</td><td></td><td colspan="3">2012</td><td></td></tr><tr><td>December 31, (in millions)</td><td>Gross asset balance</td><td>Amounts netted on the Consolidated Balance Sheets</td><td>Net asset balance</td><td></td><td>Gross asset balance</td><td>Amounts netted on the Consolidated Balance Sheets</td><td>Net asset balance</td><td></td></tr><tr><td>Securities purchased under resale agreements</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities purchased under resale agreements with an appropriate legal opinion</td><td>$354,814</td><td>$-115,408</td><td>$239,406</td><td></td><td>$381,377</td><td>$-96,947</td><td>$284,430</td><td></td></tr><tr><td>Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained</td><td>8,279</td><td></td><td>8,279</td><td></td><td>10,983</td><td></td><td>10,983</td><td></td></tr><tr><td>Total securities purchased under resale agreements</td><td>$363,093</td><td>$-115,408</td><td>$247,685</td><td><sup>(a)</sup></td><td>$392,360</td><td>$-96,947</td><td>$295,413</td><td><sup>(a)</sup></td></tr><tr><td>Securities borrowed</td><td>$111,465</td><td>N/A</td><td>$111,465</td><td><sup>(b)(c)</sup></td><td>$119,017</td><td>N/A</td><td>$119,017</td><td><sup>(b)(c)</sup></td></tr></table>
<table><tr><td></td><td colspan="6">Contractual amount</td><td colspan="2">Carrying value<sup>(g)</sup></td></tr><tr><td></td><td colspan="5">2013</td><td>2012</td><td>2013</td><td>2012</td></tr><tr><td>By remaining maturity at December 31,(in millions)</td><td>Expires in 1 year or less</td><td>Expires after1 year through3 years</td><td>Expires after3 years through5 years</td><td>Expires after 5 years</td><td>Total</td><td>Total</td><td></td><td></td></tr><tr><td>Lending-related</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Consumer, excluding credit card:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Home equity – senior lien</td><td>$2,471</td><td>$4,411</td><td>$4,202</td><td>$2,074</td><td>$13,158</td><td>$15,180</td><td>$—</td><td>$—</td></tr><tr><td>Home equity – junior lien</td><td>3,918</td><td>6,908</td><td>4,865</td><td>2,146</td><td>17,837</td><td>21,796</td><td>—</td><td>—</td></tr><tr><td>Prime mortgage</td><td>4,817</td><td>—</td><td>—</td><td>—</td><td>4,817</td><td>4,107</td><td>—</td><td>—</td></tr><tr><td>Subprime mortgage</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Auto</td><td>7,992</td><td>191</td><td>115</td><td>11</td><td>8,309</td><td>7,185</td><td>1</td><td>1</td></tr><tr><td>Business banking</td><td>10,282</td><td>548</td><td>101</td><td>320</td><td>11,251</td><td>11,092</td><td>7</td><td>6</td></tr><tr><td>Student and other</td><td>108</td><td>111</td><td>4</td><td>462</td><td>685</td><td>796</td><td>—</td><td>—</td></tr><tr><td>Total consumer, excluding credit card</td><td>29,588</td><td>12,169</td><td>9,287</td><td>5,013</td><td>56,057</td><td>60,156</td><td>8</td><td>7</td></tr><tr><td>Credit card</td><td>529,383</td><td>—</td><td>—</td><td>—</td><td>529,383</td><td>533,018</td><td>—</td><td>—</td></tr><tr><td>Total consumer</td><td>558,971</td><td>12,169</td><td>9,287</td><td>5,013</td><td>585,440</td><td>593,174</td><td>8</td><td>7</td></tr><tr><td>Wholesale:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Other unfunded commitments to extend credit<sup>(a)(b)</sup></td><td>61,459</td><td>79,519</td><td>97,139</td><td>8,378</td><td>246,495</td><td>243,225</td><td>432</td><td>377</td></tr><tr><td>Standby letters of credit and other financial guarantees<sup>(a)(b)(c)</sup></td><td>25,223</td><td>32,331</td><td>32,773</td><td>2,396</td><td>92,723</td><td>100,929</td><td>943</td><td>647</td></tr><tr><td>Unused advised lines of credit</td><td>88,443</td><td>12,411</td><td>423</td><td>717</td><td>101,994</td><td>85,087</td><td>—</td><td>—</td></tr><tr><td>Other letters of credit<sup>(a)</sup></td><td>4,176</td><td>722</td><td>107</td><td>15</td><td>5,020</td><td>5,573</td><td>2</td><td>2</td></tr><tr><td>Total wholesale</td><td>179,301</td><td>124,983</td><td>130,442</td><td>11,506</td><td>446,232</td><td>434,814</td><td>1,377</td><td>1,026</td></tr><tr><td>Total lending-related</td><td>$738,272</td><td>$137,152</td><td>$139,729</td><td>$16,519</td><td>$1,031,672</td><td>$1,027,988</td><td>$1,385</td><td>$1,033</td></tr><tr><td>Other guarantees and commitments</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities lending indemnification agreements and guarantees<sup>(d)</sup></td><td>$169,709</td><td>$—</td><td>$—</td><td>$—</td><td>$169,709</td><td>$166,493</td><td>NA</td><td>NA</td></tr><tr><td>Derivatives qualifying as guarantees</td><td>1,922</td><td>765</td><td>16,061</td><td>37,526</td><td>56,274</td><td>61,738</td><td>$72</td><td>$42</td></tr><tr><td>Unsettled reverse repurchase and securities borrowing agreements<sup>(e)</sup></td><td>38,211</td><td>—</td><td>—</td><td>—</td><td>38,211</td><td>34,871</td><td>—</td><td>—</td></tr><tr><td>Loan sale and securitization-related indemnifications:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Mortgage repurchase liability</td><td>NA</td><td>NA</td><td>NA</td><td>NA</td><td>NA</td><td>NA</td><td>681</td><td>2,811</td></tr><tr><td>Loans sold with recourse</td><td>NA</td><td>NA</td><td>NA</td><td>NA</td><td>7,692</td><td>9,305</td><td>131</td><td>141</td></tr><tr><td>Other guarantees and commitments<sup>(f)</sup></td><td>654</td><td>256</td><td>1,484</td><td>4,392</td><td>6,786</td><td>6,780</td><td>-99</td><td>-75</td></tr></table>

Question: Does the average value of Home equity – senior lien in Expires after1 year through3 year greater than that in Expires in 1 year or less ?