Company: BK-PK
Filing Date: 2025-06-26
Form Type: 11-K
Source: 0001390777-25-000094
Chunk: 16

Company: Bank of New York Mellon Corp
Filing Date: 2025-06-26
Form: 11-K
Chunk 16
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 product is typically fixed for the life of the investment.

Securities Lending

The Master Trust engages in securities lending whereby certain securities in its portfolio are loaned to other highly rated institutions generally on an open, overnight or term basis, under the terms of a prearranged contract, which normally matures in less than 90 days. By the end of the business day on which securities are delivered to the borrower, collateral with a minimum value of 102% of the market value of the loaned U.S. security, including any accrued interest, is obtained from the borrower. The market value of the securities on loan and the collateral held is monitored daily. If at any time the value of the collateral falls below 102%, the borrower may be required to deliver additional collateral necessary to restore the minimum 102% ratio, thus reducing credit risk. Market risk can also arise in securities lending transactions. These risks are managed through policies that determine what types of securities are eligible for lending at any time, and these policies are periodically reviewed. The Plan retains a portion of any income earned on the securities while on loan to the broker and a portion of any income earned on the collateral received from the broker. The carrying value

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approximates fair value for $390,872,379 and $415,971,576 of assets held as collateral under securities lending and payable upon return of securities loaned at December 31, 2024 and December 31, 2023, respectively.

#### 5. Fair Value Measurement
Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

Valuation Hierarchy

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are described below.

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 assets include common and preferred stock, self-directed accounts, U.S. Treasury securities, certain sovereign debt/sovereign guaranteed securities, exchange traded funds and derivative instruments.

Level 2: Observable inputs other than Level 1 prices, for example, are quoted prices for similar assets and liabilities in active markets, quoted prices for identical