Company: BK-PK
Filing Date: 2025-06-26
Form Type: 11-K
Source: 0001390777-25-000094
Chunk: 17

Company: Bank of New York Mellon Corp
Filing Date: 2025-06-26
Form: 11-K
Chunk 17
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 or similar assets or liabilities in markets that are not active, and inputs that are observable or can be corroborated, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 assets include items that are traded less frequently than exchange traded securities and derivative instruments whose model inputs are observable in the market or can be corroborated by market-observable data. Examples in this category are collective trust funds, U.S. government securities, corporate bonds, state and political subdivisions, sovereign debt/sovereign guaranteed securities, supranational, foreign covered bonds, funds of funds, interest-bearing cash and derivative instruments.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the Master Trust’s own assumptions about the market that participants would use to price an asset based on the best information available in the circumstances. Level 3 assets include investment contracts with insurance companies.

Valuation Methodologies

Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Common and preferred stock, self-directed accounts and exchange traded funds: These types of securities are valued at the closing price reported in the active market in which the individual securities are traded, if available.

Collective trust funds and funds of funds: The fair value of collective trust funds and funds of funds are based on the securities in the portfolio, which typically are the amount that the fund might reasonably expect to receive for the securities upon a sale. These funds are valued using observable inputs on either a daily or monthly basis.

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U.S. Treasury, U.S. government securities, corporate bonds, state and political subdivisions, sovereign debt/sovereign guaranteed, supranational and foreign covered bond investments: U.S. Treasury securities and certain sovereign debt/sovereign guaranteed securities that are actively traded in highly liquid over-the-counter markets are valued at the closing price reported in the active market and are included in Level 1 of the valuation hierarchy. U.S. government securities, corporate bonds, state and political subdivisions, sovereign debt/sovereign guaranteed, supranational and foreign covered bond investments included in Level 2 of the valuation hierarchy are valued using quoted prices for comparable securities with similar yields and credit ratings. When quoted prices are not available for identical or similar bonds, the security is valued using discounted cash flows that maximize observable inputs, such as current yields of similar instruments.

Interest-bearing cash