Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 130

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 130
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 (b)NetAmountsGross AmountPresented inBalance SheetNettingAdjustments (a)Collateral (b)NetAmountsOffsetting of financial assets:Reverse repurchase agreements$2 $(2)$— $— $7 $(7)$— $— Securities borrowed— — — — — — — — Total$2 $(2)$— $— $7 $(7)$— $— Offsetting of financial liabilities:Repurchase agreements (c)$14 $(2)$(12)$— $38 $(7)$(31)$— Total$14 $(2)$(12)$— $38 $(7)$(31)$— (a)Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis.(b)These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.(c)Repurchase agreements are primarily collateralized by mortgaged-backed agency securities and are contracted on an overnight or continuous basis. As of December 31, 2024, assets pledged as collateral against repurchase agreements totaled $14 million.  Assets pledged as collateral are reported in “available for sale” and “held-to-maturity” securities on the Consolidated Balance Sheets. At December 31, 2024, the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $12 million. The collateral pledged under customer sweep repurchase agreements is posted to a third-party custodian and cannot be sold or repledged by the secured party. The risk related to a decline in the market value of collateral pledged is minimal given the collateral's high credit quality and the overnight duration of the repurchase agreements.Like other financing transactions, securities financing agreements contain an element of credit risk. To mitigate and manage credit risk exposure, we generally enter into master netting agreements and other collateral arrangements that give us the right, in the event of default, to liquidate collateral held and to offset receivables and payables with the same counterparty.  Additionally, we establish and monitor limits on our counterparty credit risk exposure by product type. For the reverse repurchase agreements, we monitor