Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 110

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 110
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 Commodity12 — — 12 22 — — 22 23 — — 23 Credit1 — (58)(57)2 — (52)(50)(1)— (39)(40)Other— 2 5 7 — (1)(6)(7)— 4 (2)2 Total net gains (losses)$98 $2 $(53)$47 $115 $(1)$(58)$56 $131 $4 $(35)$100 Counterparty Credit RiskWe use several means to mitigate and manage exposure to credit risk on derivative contracts. We enter into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. Additionally, we monitor counterparty credit risk exposure on each contract to determine appropriate limits on our total credit exposure across all product types. We review our collateral positions on a daily basis and exchange collateral with our counterparties in accordance with standard ISDA documentation, central clearing rules, and other related agreements. We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral netted against derivative assets on the balance sheet totaled $75 million at December 31, 2024, and $408 million at December 31, 2023. The cash collateral netted against derivative liabilities totaled $124 million at December 31, 2024, and $64 million at December 31, 2023. The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our net exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.December 31,Dollars in millions20242023Interest rate$58 $123 Foreign exchange81 42 Commodity170 409 Credit— — Other15 15 Derivative assets before collateral324 589 Plus (Less): Related collateral(75)(408)Total derivative assets$249 $181 

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We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Since these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk.We enter into transactions with broker-dealers and banks for various risk management purposes. These types of transactions are primarily