Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 173

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 173
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 3 3 6 Total net gains (losses)$22 $— $(1)$21 $25 $3 $(8)$20 Counterparty Credit RiskWe hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $38 million was netted against derivative assets on the balance sheet at March 31, 2025, compared to $75 million of cash collateral netted against derivative assets at December 31, 2024. The cash collateral netted against derivative liabilities totaled $287 million at March 31, 2025, and $124 million at December 31, 2024. Our means of mitigating and managing exposure to credit risk on derivative contracts is described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 144 of our 2024 Form 10-K under the heading “Counterparty Credit Risk.”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.Dollars in millionsMarch 31, 2025December 31, 2024Interest rate$75 $58 Foreign exchange57 81 Commodity314 170 Credit— — Other12 15 Derivative assets before collateral458 324 Plus(Less): Related collateral(38)(75)Total derivative assets$420 $249 We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Given that these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk.

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We enter into transactions with broker-dealers and banks for various risk management purposes. These types oftransactions are primarily high dollar volume. We enter into bilateral collateral and master netting agreements withthese counterparties. We clear certain types of derivative transactions with these counterparties, whereby centralclearing organizations become the counterparties to our derivative contracts. In addition, we enter into derivativecontracts through swap execution facilities. Swap clearing and swap execution facilities reduce our exposure tocounterparty credit risk. At March 31, 2025, we had gross exposure of $103 million to broker-dealers and banks and a net exposure of $23 million after the application of master netting agreements and cash collateral