Board of Governors of the Federal Reserve System

S1S.t/S1S.s: Domestic nonfinancial sectors

This table was previously numbered F.100/L.100 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The domestic nonfinancial sector equals the sum of the following sectors shown on tables S1M, S11, and S13: households and nonprofit organizations, nonfinancial business (nonfinancial corporate business and nonfinancial noncorporate business), and general government (federal government and state and local governments).

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S1M.t/S1M.s: Balance sheet of households and nonprofit organizations

This table was previously numbered F.101/L.101 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

This table presents the entire balance sheet of the households and nonprofit organizations sector (see table S15.b for a description of the sector). In contrast to table S1M.s, the balance sheet includes nonfinancial assets and net worth.

Nonfinancial assets include owner-occupied real estate, as well as commercial real estate, equipment and intellectual property products owned by nonprofit organizations, and consumer durable goods. In addition to primary residences, owner-occupied real estate includes farmhouses, mobile homes, second homes that are not rented, vacant homes for sale, and vacant land. Real estate is recorded at market value, while other nonfinancial assets are recorded at replacement (current) cost.

Assets held in Individual Retirement Accounts (IRAs) and assets held in 529 College Plans are identified as separate memo items. Both are included in the assets shown on the household balance sheet. Section 529 plans are formally known as "qualified tuition programs" and they are generally administered by states. There are two types of 529 college plans: the prepaid tuition plans (tuition credits are purchased for the beneficiary) and college savings plans (contributions are made to an investment account and distributions are used for qualified educational expenses). Both are presented as separate memo sub-items. A December 18, 2015, FEDS Note, "Introducing Section 529 Plans into the U.S. Financial Accounts and Enhanced Financial Accounts," by Madeline McCullers and Irina Stefanescu describes these data in more detail and is available at http://www.federalreserve.gov/econresdata/notes/feds-notes/2015/introducing-section-529-plans-into-the-us-financial-accounts-and-enhanced-financial-accounts-20151218.html.

A memo item shows the structure components of real estate at replacement cost. Also presented as memo items are household net worth as a percentage of disposable personal income, owners'-equity in household real estate, and owners'-equity as a percentage of household real estate.

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S11.t/S11.s: Nonfinancial business

This table was previously numbered F.102/L.102 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The nonfinancial business sector equals the sum of two sectors: nonfinancial corporate business and nonfinancial noncorporate business.

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S11.1.t/S11.1.s: Balance sheet of nonfinancial corporate business

This table was previously numbered F.103/L.103 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

This table presents the entire balance sheet of the nonfinancial corporate business sector (see table S11.1.t or S11.1.s for a description of the sector). In contrast to table S11.1.s, the balance sheet includes nonfinancial assets and net worth.

Nonfinancial assets include real estate, equipment and software, and inventories. Real estate is recorded at market value, while other nonfinancial assets are recorded at replacement (current) cost. Through 1992, corporate bonds include net issues by Netherlands Antillean financial subsidiaries, and U.S. direct investment abroad excludes net inflows from those bond issues. Memo items show total corporate equities outstanding at market value, detail for public and private issues, foreign direct investment: equity, and three ratios: equities to net worth, debt to equities, and debt to net worth. Additional memo items show the structure components of real estate at replacement cost and nonfinancial assets at historical cost.

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S11.2.t/S11.2.s: Balance sheet of nonfinancial noncorporate business

This table was previously numbered F.104/L.104 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

This table presents the entire balance sheet of the nonfinancial noncorporate business sector (see table S11.2.t or S11.2.s for a description of the sector). In contrast to table S11.2.s, the balance sheet includes nonfinancial assets and net worth.

Nonfinancial assets include real estate, equipment and software, and inventories. Real estate is recorded at market value while other nonfinancial assets are recorded at replacement (current) cost. A memo item shows the structure components of real estate at replacement cost. Debt to net worth is also presented as a memo item.

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S13.t/S13.s: General government

This table was previously numbered F.105/L.105 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The general government sector equals the sum of two sectors: federal government and state and local governments. Memo items show the financial assets and liabilities of the consolidated general government sector, which excludes Treasury securities and municipal securities held by state and local governments and federal government loans to state and local governments.

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S1311.t/S1311.s: Federal government

This table was previously numbered F.106/L.106 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The federal government sector comprises the federal agencies, programs, and activities that are in the unified budget. The sector does not include the District of Columbia government, which is part of the state and local governments sector; the Federal Reserve Banks; government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac; or assets and liabilities held for liquidation in Federal Deposit Insurance Corporation receivership, which are accounted for in the U.S.-chartered depository institutions sector. The sector does include Ginnie Mae which is a government-owned corporation within the Department of Housing and Urban Development (HUD).

The sector is presented in the financial accounts on a consolidated basis, with holdings of marketable and nonmarketable Treasury securities by agencies within the federal government netted out (the largest intra-governmental holdings of Treasury securities are those held by the Old Age and Survivors Insurance Trust Fund). As a result, the liability for securities outstanding shown for the federal government in the accounts is smaller than the published value for the total public debt, which includes securities held by the federal agencies.

An exception to the above is that assets held for the purpose of providing retirement benefits to federal workers are not part of the federal government sector but are included in the federal government pension funds sector. Nonmarketable Treasury securities held by the federal government employee retirement sector are classified as other loans and advances and are included as liabilities of the federal government, not as intergovernmental debt.

Beginning in 2008, the federal government expanded Treasury securities issuance to cover purchases of corporate equities and agency- and GSE-backed securities and to make loans under the Troubled Asset Relief Program, or TARP, and other financial stabilization programs. In addition, the federal government increased deposits in the Treasury temporary supplementary financing account at the Federal Reserve to support its financial stabilization loans and securities purchases.

The entries for current receipts, current expenditures, and saving are based on national income and product accounts (NIPA) table 3.2. However, net capital transfers paid that are shown here differ from those presented on BEA’s NIPA table 5.11 Capital Transfers Paid and Received, by Sector and by Type because financial stabilization payments are considered capital transfers by NIPA but are considered revaluations in the financial accounts. A full balance sheet for this sector is available in the Integrated Macroeconomic Accounts for the United States (tables S1311.i.a and S1311.i.q), which includes the value of structures, equipment, and software but not the value of land.

Due to COVID-19 response, in 2020:Q2, the federal government, through the U.S. Treasury, made equity investments in the Money Market Mutual Fund Liquidity Facility (MMLF) and five additional funding, credit, and liquidity facilities created as special purpose vehicles, and classified in the other financial business sector: the Corporate Credit Facilities (CCF), the Main Street Lending Program (MSLP), the Term Assets Lending Facility (TALF), the Municipal Liquidity Facility (MLF), and the Commercial Paper Funding Facility (CPFF). In addition, in order to align with NIPA accrual treatment of Paycheck Protection Program (PPP) loan forgiveness subsidies to businesses and current transfers to nonprofit institutions serving households (NPISH), PPP payable liabilities were added to the federal government sector to account for the accrued liability to repay PPP loans in future periods, and are equal to loan forgiveness subsidies to businesses and current transfers to NPISH reported in NIPA.

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S13M.t/S13M.s: State and local governments

This table was previously numbered F.107/L.107 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for state and local governments, excluding employee pension funds, consists of the government operations of the 50 states, their political subdivisions, and the District of Columbia, including debt-issuing authorities, government enterprises, and workers' compensation trust funds. The sector excludes unemployment compensation trust funds, which are part of the federal government, and state and local government employee pension funds, which form a separate financial sector.

Current receipts, expenditures and saving for the sector are based on national income and product accounts table 3.3, "State and Local Government Current Receipts and Expenditures." A full balance sheet for this sector is available in the Integrated Macroeconomic Accounts for the United States (tables S13M.i.a and S13M.i.q), including the value of structures, equipment, and software but not the value of land.

The sector's holdings of debt securities, corporate equities, and mutual fund shares are reported at market value.

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S12.t/S12.s: Domestic financial sectors

This table was previously numbered F.108/L.108 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The domestic financial sector equals the sum of the following sectors shown on tables S121 through S129: central bank, private depository institutions (U.S.-chartered depository institutions, foreign banking offices in U.S., banks in U.S.-affiliated areas, and credit unions), property-casualty insurance companies, life insurance companies, private pension funds, state and local government employee pension funds, federal government pension funds, money market funds, mutual funds, closed-end funds, exchange-traded funds, government-sponsored enterprises, agency- and GSE-backed mortgage pools, issuers of asset-backed securities, finance companies, real estate investment trusts, security brokers and dealers, holding companies, and other financial business.

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S121.t/S121.s: Central bank

This table was previously numbered F.109/L.109 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The central bank sector is the group of institutions and financial accounts that supply reserve funds to depository institutions and absorb funds from them. The sector includes the 12 Federal Reserve Banks and their subsidiary offices (but not the Board of Governors of the Federal Reserve System).

Historically, the largest asset of the central bank sector is Treasury securities, which the Federal Reserve System buys and sells through open market operations to conduct monetary policy, while the primary liabilities are currency and reserve deposits and other deposits. Beginning 2012:Q1, holdings of debt securities are recorded at market value. On the liability side, this expansion was funded by the U.S. Treasury's increased deposits in a temporary supplementary financing account at the Federal Reserve and by depository institutions holding much higher reserves.

Due to the financial crisis of 2008 and the COVID-19 pandemic, the Federal Reserve's balance sheet expanded on the asset side to include significant amounts of loans to financial institutions, purchases of Treasury securities and agency- and GSE-backed securities, and reciprocal currency arrangements (swap lines) with foreign central banks. Loans extended by the Federal Reserve to the other financial business sector include loans to Maiden Lane LLC to facilitate the arrangements associated with JPMorgan Chase & Co.'s acquisition of Bear Stearns Companies, Inc., loans to AIG, loans to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of AIG subsidiaries, loans to Maiden Lane III LLC to purchase CDOs on which AIG has written credit default swap contracts, and loans to the Commercial Paper Funding Facility LLC.

The Federal Reserve's reverse repurchase agreement operations, which began in 2013:Q3, are shown as detail under the security repurchase agreement liability. A March 24, 2015 FEDS Note, "The Federal Reserve's Overnight and Term Reverse Repurchase Agreement Operations in the Financial Accounts of the United States" by Ralf Meisenzahl, describes these operations in more detail. The note is available at http://www.federalreserve.gov/econresdata/notes/feds-notes/2015/federal-reserves-overnight-and-term-rrp-agreement-operations-in-financial-accounts-of-the-united-states-20150324.html.

In 2016, several financial market utilities designated systemically important by the Financial Stability Oversight Council (Council) under Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) were allowed to open accounts at Federal Reserve banks. More information on designated financial market utilities (DFMU) is available at: https://www.federalreserve.gov/paymentsystems/designated_fmu_about.htm.

Due to COVID-19 response, in 2020:Q1, the Federal Reserve lent to broker dealers under the Primary Dealer Credit Facility (PDCF) and to depository institutions and broker dealer subsidiaries of U.S. bank holding companies under the Money Market Mutual Fund Liquidity Facility (MMLF). In addition, the Federal Reserve enhanced the provision of liquidity via U.S. dollar liquidity swap line arrangements. In 2020:Q2, the Federal Reserve established the Paycheck Protection Program Liquidity Facility (PPPLF) to provide additional liquidity to lenders of Paycheck Protection Programs Loans. In addition, the Federal Reserve established five funding, credit, and liquidity facilities as special purpose vehicles (SPVs): the Corporate Credit Facilities (CCF), the Main Street Lending Program (MSLP), the Term Assets Lending Facility (TALF), the Municipal Liquidity Facility (MLF), and the Commercial Paper Funding Facility (CPFF). The Federal Reserve made loans to these SPVs, which are classified in the other financial business sector. More information on Federal Reserve facilities is available at https://www.federalreserve.gov/reports-to-congress-covid-19.htm

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S122.t/S122.s: Private depository institutions

This table was previously numbered F.110/L.110 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The private depository institutions sector equals the sum of the U.S.-chartered depository institutions, foreign banking offices in U.S., banks in U.S.-affiliated areas, and credit unions.

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S122.1.t/S122.1.s: U.S.-chartered depository institutions

This table was previously numbered F.111/L.111 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

U.S.-chartered depository institutions are financial intermediaries that raise funds through demand and time deposits as well as from other sources, such as federal funds purchases and security repurchase agreements, funds from parent companies, and borrowing from other lending institutions (for example, the Federal Home Loan Banks); they use the funds to make loans, primarily to businesses and individuals, and to invest in securities. U.S.-chartered depository institutions include national commercial banks chartered by the Controller of the Currency, state-chartered commercial banks (chartered by one of the 50 states or the District of Columbia), federal savings banks, state-chartered savings banks, cooperative banks, savings and loan associations, international banking facilities (IBFs) established by U.S.-chartered depository institutions (included in the sector since the establishment of IBFs in 1981:Q4), and assets and liabilities of failed banks in the process of liquidation held in Federal Deposit Insurance Corporation receivership.

In recent years, this sector has undergone significant consolidation because of both the gradual removal of prohibitions on interstate banking arrangements and the growing similarity of the functions provided by different types of financial institutions. At the end of 2014, there were approximately 6,500 U.S.-chartered depository institutions insured by the FDIC, down from almost 14,000 twenty years prior.

Foreign branches and foreign subsidiaries of U.S.-chartered depository institutions are excluded sectors; their assets and liabilities are included in the rest of the world sector. However, domestic nonbanking subsidiaries of U.S.-chartered depository institutions are consolidated with their parents. Holdings of debt securities (beginning 2012:Q1), corporate equities, and mutual fund shares are recorded at market value.

A memo item on the table shows the total amount of checkable and time and savings deposits that are not insured by the Federal Deposit Insurance Corporation (FDIC). As of 2010:Q4, the standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Prior to 2006:Q1, the standard insurance amount was $100,000. Beginning 2006:Q1, the limit was raised to $250,000 for retirement accounts under the Federal Deposit Insurance Reform Act of 2005. In 2008:Q4, the standard insurance amount was temporarily increased to $250,000 under the Emergency Economic Stabilization Act of 2008. In 2010:Q4, it was made permanent under Dodd-Frank Act of 2010. Additionally, in 2008:Q4, the FDIC guaranteed in full, all non-interest-bearing transaction accounts (checkable deposits) under the Transaction Account Guarantee Program (TAGP) through 2010:Q4. The guarantee in full of all non-interest-bearing transaction accounts was extended through 2012:Q4 under the Dodd-Frank Act 2010. All deposits of IBFs are considered uninsured.

Note: Because of accounting rule changes established by Statements of Financial Accounting Standards Nos. 166 and 167 in 2010:Q1, depository institutions consolidated back onto their balance sheets the assets and liabilities of certain special purpose vehicles that had previously been off balance sheet. This shift primarily increased loans on the asset side and corporate bonds and open market paper on the liability side.

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S122.2.t/S122.2.s: Foreign banking offices in U.S.

This table was previously numbered F.112/L.112 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The foreign banking offices in U.S. sector consists of five groups of banking institutions that are foreign-related or that engage exclusively in international business: (1) branches and agencies of foreign banks that are not incorporated separately from their parents, are located in the United States, and are engaged in U.S. banking business; (2) Edge Act and agreement corporations, which are U.S. subsidiaries of either domestic or foreign banks and are established by such banks to engage in international business; (3) New York state investment companies, which are banking offices owned by one or more foreign banks and are chartered by the state of New York (included in the sector through 1996:Q2); (4) international banking facilities (IBFs) established by foreign banking offices in U.S. (included in the sector since the establishment of IBFs in 1981:Q4); and (5) American Express Bank, the international banking subsidiary of American Express Company (included in the sector through 2008:Q4). Domestically chartered U.S. depository institutions owned in whole or in part by foreign banks are part of the sector for U.S.- chartered depository institutions rather than the sector for foreign banking offices in the United States.

The Monetary Control Act of 1980 requires that foreign banking offices, along with other depository institutions, hold required reserves equal to a percentage of their deposit liabilities; the reserves must be held in the form of deposits with Federal Reserve Banks or vault cash. Since that requirement took effect, the institutions have also been eligible to borrow at the Federal Reserve discount window.

Holdings of debt securities and corporate equities are recorded at market value. Revaluations of debt securities begin 2012:Q1.

A memo item on the table shows the total amount of checkable and time and savings deposits that are not insured. All checkable deposits and time and savings deposits of foreign banking offices in the U.S. are considered uninsured according to the Federal Deposit Insurance Act of 1991.

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S122.3.t/S122.3.s: Banks in U.S.-affiliated areas

This table was previously numbered F.113/L.113 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

This sector is made up of commercial banks chartered in U.S.-affiliated areas and branches of U.S.-chartered commercial banks operating in these areas. These U.S.-affiliated areas are the U.S. territories of American Samoa, Guam, and the U.S. Virgin Islands; the Commonwealth of the Northern Mariana Islands and the Commonwealth of Puerto Rico; two freely associated states--the Republic of the Marshall Islands and the Federated States of Micronesia; and the Trust Territory of the Pacific Islands (Palau). Additional U.S.-affiliated areas, which are uninhabited, or which have only a military presence, are Baker Island, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Island, Navassa Island, Palmyra, and Wake Atoll.

Banks in U.S.-affiliated areas are considered part of the United States in balance of payments statistics published by the Bureau of Economic Analysis (BEA) but are considered foreign entities in the U.S. national income and product accounts published by the BEA. In addition, banks in U.S.-affiliated areas are not included in the definition of commercial banks in the Federal Reserve Statistical Release H.8, "Assets and Liabilities of Commercial Banks in the United States."

Holdings of debt securities are recorded at market value. Revaluations of debt securities begin 2012:Q1.

A memo item on the table shows the total amount of checkable and time and savings deposits that are not insured by the Federal Deposit Insurance Corporation (FDIC). As of 2010:Q4, the standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Prior to 2006:Q1, the standard insurance amount was $100,000. Beginning 2006:Q1, the limit was raised to $250,000 for retirement accounts under the Federal Deposit Insurance Reform Act of 2005. In 2008:Q4, the standard insurance amount was temporarily increased to $250,000 under the Emergency Economic Stabilization Act of 2008. In 2010:Q4, it was made permanent under Dodd-Frank Act of 2010. Additionally, in 2008:Q4, the FDIC guaranteed in full, all non-interest-bearing transaction accounts (checkable deposits) under the Transaction Account Guarantee Program (TAGP) through 2010:Q4. The guarantee in full of all non-interest-bearing transaction accounts was extended through 2012:Q4 under the Dodd-Frank Act 2010. All deposits of IBFs are considered uninsured.

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S122.4.t/S122.4.s: Credit unions

This table was previously numbered F.114/L.114 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Credit unions are federally, or state-chartered savings institutions open to members who share a so-called common bond, such as employment, geographic proximity, or organization membership. At the end of 2014 there are about 6,300 credit unions in the United States, including the U.S. territory of Puerto Rico, offering primarily consumer-oriented financial services; most are small institutions, although a few are very large and operate in the national financial arena.

The credit union industry has a hierarchical structure. Local credit unions belong to twenty-three corporate credit unions. The corporate credit unions accept deposits from and make loans to member credit unions; they also provide wholesale financial and payments services to their credit union constituency. In the sector statement for credit unions, intra-sector transactions are netted out, but the investments of the corporate credit unions with institutions outside the credit union sector are included in the sector's total assets.

Holdings of debt securities, corporate equities, and mutual fund shares are recorded at market value. Revaluations of debt securities begin 2012:Q1.

The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration (NCUA), insures deposits in federal credit unions and federally insured state-chartered credit unions. A memo item on the table shows the total amount of checkable and time and savings deposits that are not insured under NCUSIF. Prior to 2006:Q1, the deposit insurance amount was $100,000. Beginning 2006:Q1, the insured amount was raised to $250,000 for retirement accounts under the Federal Deposit Insurance Reform Act of 2005. In 2008:Q4, the insurance amount was temporarily increased to $250,000 under the Emergency Economic Stabilization Act of 2008. In 2010:Q4, the $250,000 deposit insurance amount was made permanent under Dodd-Frank Act of 2010.

Federally insured credit unions pay an annual premium into the NCUSIF, which holds only securities issued by the U.S. government; in the financial accounts, in the sector for credit unions, total holdings of Treasury securities include an amount equal to the accumulated contributions of insured credit unions shown on the NCUSIF's balance sheet.

Data for the credit union sector are from the corporate credit union and natural person credit union call reports, as well as America's Credit Unions (previously called Credit Union National Association through 2023).

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S123.t/S123.s: Money market funds

This table was previously numbered F.121/L.121 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Money market funds (MMFs) are mutual funds that invest in short-term liquid assets and pay their investors dividends that reflect short-term interest rates. Like other mutual funds, MMFs are open-end investment companies registered with the Securities and Exchange Commission and regulated under the Investment Company Act of 1940. In addition, all MMFs must comply with rule 2a-7 of the Investment Company Act of 1940, which seeks to limit the risk of MMFs by, for example, restricting the funds' holdings of securities of a single private issuer to no more than 5 percent of assets, limiting the average maturity of a fund's portfolio to 60 days or less, and requiring that each fund maintain minimum stocks outstanding of assets that can be readily converted to cash. The sector includes variable annuity MMFs.

MMFs typically invest in Treasury securities, agency- and GSE-backed securities, certificates of deposit, commercial paper, short-term municipal securities, repurchase agreements, and other highly liquid and low-risk securities. MMFs are generally marketed to either institutional or "retail" (individual) investors. MMF balances are not insured by any federal agency.

Prior to 2010:Q4, data for the sector are from the Investment Company Institute, which excludes private placements that are not registered under the Securities Act of 1933. Beginning 2010:Q4, data are from Security and Exchange Commission Form N-MFP, which is filed by registered open-end management investment companies, or series thereof, that are regulated as money market funds pursuant to rule 2a-7 under the Investment Company Act of 1940, including private placements that were previously excluded. Data for the sector are compiled from master fund net assets (cash, portfolio securities, other assets, less liabilities) and exclude a single fund of fund that invests primarily in other MMFs. Note that the expansion of MMF sector coverage associated with the change in source data results in a substantial increase in the stock of assets and shares of MMFs outstanding in 2010:Q4. Changes in the stock due to changes in the data source are recorded as other volume changes in the Financial Accounts.

Several memo items are reported on the table. Beginning 2016:Q4, two memo items distinguish between MMFs that maintain a stable NAV (maintain a constant $1 share price) and MMFs that are required to maintain a floating NAV as of the October 14, 2016, implementation data of Securities and Exchange Commission money market reforms. Note that some funds used floating NAV prior to the reform. Memo items are also shown for three investment classifications of MMFs: government funds, prime funds, and tax-exempt funds. Lastly, a memo item shows the amount held in variable annuity money market funds.

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S124.1.t/S124.1.s: Mutual funds

This table was previously numbered F.122/L.122 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Mutual funds are open-end investment companies that are registered with the Securities and Exchange Commission and regulated under the Investment Company Act of 1940. Mutual funds purchase financial assets using money obtained mainly through the issuance of shares. The net asset value (NAV) of each share of a mutual fund reflects the market value of the fund's holdings less any expenses charged by the fund. Mutual funds are "open end" investment companies; that is, they are permitted to issue an unlimited number of shares and are required by law to redeem the shares at NAV.

Mutual funds typically have specific investment objectives and invest in a limited class of assets, such as domestic stocks, stocks issued by companies in particular industries or in certain areas of the world, corporate bonds and notes, Treasury securities, municipal securities, or some combination of these asset classes. Shareholders receive returns through a pass-through of current interest and dividends, distributions of realized capital gains, and an accumulation of unrealized capital gains.

The financial accounts mutual fund sector covers all open-end investment companies that report to the Investment Company Institute (ICI), including variable annuity mutual funds. Money market funds (shown on tables S123.t and S123.s), exchange-trade funds (shown on tables S124.3.t and S124.3.s), and hedge funds are not included. Holdings of debt securities (beginning 1980:Q1), corporate equities, and mutual fund shares are recorded at market value.

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S124.2.t/S124.2.s: Closed-end funds

This table was previously numbered F.123/L.123 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

A closed-end fund is a type of investment company that is registered with the Securities and Exchange Commission and regulated under the Investment Company Act of 1940. Unlike mutual funds, closed-end funds generally do not issue additional shares after an initial public offering and are not required by law to redeem outstanding shares. Instead, a closed-end fund's shares are listed on a stock exchange or traded in the over-the-counter market. The market price of closed-end fund shares fluctuates like that of other publicly traded securities and is determined by supply and demand in the marketplace. The assets of a closed-end fund are professionally managed in accordance with the fund's investment objectives and policies, and the assets may be invested in stocks, bonds, and other securities. Holdings of debt securities (beginning 1995:Q1), corporate equities, and mutual fund shares are recorded at market value.

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S124.3.t/S124.3.s: Exchange-traded funds

This table was previously numbered F.124/L.124 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

An exchange-traded fund (ETF) is an investment company, typically a mutual fund or unit investment trust, whose shares are traded intraday on stock exchanges at market prices. Retail investors may buy or sell ETF shares through a broker just as they would the shares of any publicly traded company. Large investors (known as authorized participants) can buy or redeem shares directly from the ETF via in-kind or sometimes cash transactions in large blocks (typically 50,000 shares). The first ETF--a broad-based domestic equity fund tracking the S&P 500 index--was introduced in 1993.

Holdings of debt securities (beginning 2002:Q3), corporate equities, and mutual fund shares are recorded at market value.

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S124.4.t/S124.4.s: Mortgage real estate investment trusts (mortgage REITs)

This table was previously numbered F.129/L.129 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Real estate investment trusts (REITs) are companies that manage a portfolio of real estate assets for the benefit of their shareholders. There are two main types of REITs: mortgage REITs, which invest in mortgages, are reported in this table; and equity REITs, which invest in and own properties, are included in the nonfinancial corporate business sector (tables S11.1.t, S11.1.s, S11.1.b, and S11.1.r). To qualify as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders each year. Shares of public REITs trade like stocks on the major exchanges. REITs were established as pass-through entities by federal legislation in 1960, which eliminated double taxation. REIT data in the financial accounts begin in 1968. REITs invest in several diverse types of real estate, including residential, retail, office, industrial, health care, hotel properties, and self-storage facilities.

With the 2007 revision of the North American Industry Classification System, or NAICS, equity REITs were reclassified from a financial category to a nonfinancial category (sector 53, Real Estate subsector). Mortgage REITs remained in the financial category (sector 52, Other Financial Vehicles subsector). Additionally, the System of National Accounts 2008 (SNA) classifies equity REITs as nonfinancial. In the December 7, 2023 release of the Z.1 Financial Accounts, equity REITs were moved into the nonfinancial corporate business sector to better align with the SNA guidelines, while mortgage REITs remain within the domestic financial sectors.

In 2013:Q2 the mortgage REIT assets and liabilities increased due to the acquisition of a large special servicer and the consolidation of off-balance sheet holdings on the balance sheet of the purchaser. Assets and liabilities reported at fair value are converted to book value based on information provided in investor presentation materials.

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S125s1.1.t/S125s1.1.s: Government-sponsored enterprises (GSEs)

This table was previously numbered F.125/L.125 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Government-sponsored enterprises (GSEs) are financial service corporations created by the U.S. Congress to ensure or enhance the availability of credit to certain sectors of the economy, such as housing and agriculture. The sector is composed of the Federal Home Loan Banks (FHLBs), the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal Agricultural Mortgage Corporation (Farmer Mac), the Farm Credit System, the Financing Corporation (FICO), and the Resolution Funding Corporation (REFCORP). The Student Loan Marketing Association, or Sallie Mae, was included until it was fully privatized in the fourth quarter of 2004.

This sector consists of a diverse group of enterprises, not only in terms of their mission, but also in terms of their relationship with the federal government. The FHLBs are a system of twelve regional banks that lend funds to U.S.-chartered depository institutions, credit unions, and life insurance companies. Both Freddie Mac and Fannie Mae, two agencies devoted to housing finance, were placed in conservatorship (a device used to maintain public confidence in an endangered financial institution) in September 2008; the conservator is the federal government, which legally controls both agencies. Farmer Mac is a private corporation that purchases and then securitizes loans on farms and farmland. The Farm Credit System is a network of borrower-owned lenders that makes loans to farmers and other rural concerns. Following the 1980s savings and loans crisis, the FICO and the REFCORP were established to serve as financing vehicles for the Federal Savings and Loan Insurance Corporation Resolution Fund and the Resolution Trust Corporation, respectively. In the financial accounts, securities issued by the GSEs are not included in government debt.

Note: Beginning in the first quarter of 2010, Freddie Mac and Fannie Mae moved almost all of their one to four-family mortgage pools on to their consolidated balance sheets in response to new accounting rules (Financial Accounting Standards Nos. 166 and 167). Some multifamily pools issued by those GSEs also were moved on to their balance sheets, as well as some pools of farm loans issued by Farmer Mac.

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S125s1.2.t/S125s1.2.s: Agency- and GSE-backed mortgage pools

This table was previously numbered F.126/L.126 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Mortgage pools are a group of mortgages used as collateral for a mortgage-backed security. These pools are held in special purpose vehicles, which allow an originator to move mortgages off its balance sheet into a bankruptcy-remote vehicle.

Agency- and GSE-backed mortgage pools include mortgage pools backed by four types of properties: (1) pools consisting of one to four-family mortgages, issued by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); (2) pools of multifamily loans issued by Ginnie Mae, Fannie Mae, and Freddie Mac; (3) pools of commercial mortgages issued by the Farmers Home Administration (FmHA), which wound down all of its commercial mortgage pools at the end of 1996 (FmHA also formed one to four-family, multifamily, and farm mortgage pools, but withdrew completely from that business by the end of the 1990s); and (4) pools of farm mortgages issued by the Federal Agricultural Mortgage Corporation (Farmer Mac).

Securities issued by the agencies to fund these pools are known as mortgage-pool securities. These obligations are largely pass-through securities, in which purchasers receive interest, amortization, and principal payments on the underlying mortgages. In the financial accounts, these securities are part of the instrument category of agency- and GSE-backed securities and are equal to the unpaid balances of the mortgages in the pools.

Note: Beginning in the first quarter of 2010, Freddie Mac and Fannie Mae moved almost all of their one to four-family mortgage pools on to their consolidated balance sheets in response to new accounting rules (Financial Accounting Standards Nos. 166 and 167). Some multifamily pools issued by those GSEs also were moved on to their balance sheets, as well as some pools of farm loans issued by Farmer Mac.

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S125s1.3.t/S125s1.3.s: Issuers of asset-backed securities (ABS)

This table was previously numbered F.127/L.127 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Issuers of asset-backed securities (ABS) are special purpose vehicles (SPVs) that hold pools of assets (usually loans) in trust and use them as collateral for issuance of ABS. Most of these SPVs are formed by depository institutions, real estate investment trusts (REITs), and finance companies to move assets off their balance sheets into bankruptcy-remote entities. These originators often continue to act as servicers of the loans after the SPV is formed to earn fee income. Other SPVs purchase funding agreements (which are deposit-type contracts) from life insurance companies using funds raised from various investors. This sector includes all off-balance-sheet SPVs, except those in the sector for agency- and GSE-backed mortgage pools and those in the REIT sector (shown as a memo item at the bottom of this table).

Assets in the pools include one-to-four-family residential, multifamily residential, and commercial mortgages; consumer credit (such as automobile and student loans and credit card receivables); trade credit; Treasury securities; agency- and GSE-backed securities; other loans and advances; and miscellaneous assets. The instrument "other loans and advances" includes nonfinancial business loans securitized by depository institutions and finance companies and syndicated loans to nonfinancial corporate businesses. The instrument "miscellaneous assets" includes funding agreements with life insurance companies.

Liabilities of this sector are security repurchase agreements and the securities issued by the SPVs and are typically medium- to long-term corporate bonds and commercial paper. These securities are largely pass-through securities, in which purchasers receive any interest, amortization, and principal payments on the underlying collateral.

Also included in this sector are consumer motor vehicle leases that were originally held by finance companies but have now been securitized. Acquisition of the motor vehicles by issuers of ABS occurs when the lease is securitized and is shown as fixed investment on this table. The leases themselves are not financial assets of this sector or of the original finance company lessor and are not liabilities of the household sector; rather, lease payments are treated as consumer expenditures by the household sector and as current income of the issuers of the ABS sector. The securitized consumer leases are shown as a memo item at the bottom of this table.

Instruments comprised of asset-backed securities, such as collateralized debt obligations (CDOs) and structured investment vehicles (SIVs), are not included in the financial accounts because of limited source data. In the ABS table, CDOs and SIVs, which are comprised of outstanding securities, are not included on the asset side. Similarly, the bonds issued by CDOs and SIVs are not included on the liabilities side of the ABS sector balance sheet.

Note: Because of accounting rule changes established by Statements of Financial Accounting Standards Nos. 166 and 167 in the first quarter of 2010, commercial paper that had been issued by SPVs with depository institution parents was removed from this sector's debt and consolidated back on to the parents' balance sheet. The amount of commercial paper outstanding that was shifted is shown as a memo item at the bottom of this table.

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S125s2.1.t/S125s2.1.s: Finance companies

This table was previously numbered F.128/L.128 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

This sector includes both finance companies and mortgage companies. Data for this sector are based on a Federal Reserve survey where finance companies are defined as companies in which 50 percent or more of assets are held in any of the following types of loan or lease assets: (1) liens on real estate, which are outstanding balances on loans or leases, for any purpose, secured by liens on real estate; and (2) loans and leases not secured by real estate: (a) business loans and leases, which are outstanding balances on loans and on leases for commercial and industrial purposes to sole proprietorships, partnerships, corporations, and other business enterprises; and (b) consumer loans and leases, which are outstanding balances on loans and on leases for household, family, and other personal expenditures. In the financial accounts, liens on real estate are mortgages, business loans and leases are classified as other loans and advances, and consumer loans are consumer credit. U.S. direct investment abroad and foreign direct investment in the U.S. are treated as part of equity capital in the Federal Reserve survey. Holdings of corporate and foreign bonds are recorded at market value beginning 2011:Q1.

Finance companies do not include U.S.-chartered depository institutions, cooperative banks, credit unions, investment banks, or industrial loan corporations. However, subsidiaries of a holding company or foreign banking organization may be considered finance companies. Captive finance companies, which are subsidiaries of nonfinancial companies that provide financing to customers of the parent company's products, are also included in this sector.

Finance companies own motor vehicles that are leased to consumers. The acquisition of the vehicles by finance companies is recorded as fixed investment, and the debt used to finance the purchase of the vehicles is reported as a liability. However, the leases themselves are neither financial assets of the lessors (finance companies) nor liabilities of lessees (households). Lease payments are treated as consumer expenditures by the lessee and as current income to the lessor. Consumer leases are shown as a memorandum item at the bottom of this table.

Beginning with the 2006:Q2 release of the financial accounts, the mortgage company sector was combined with the finance company sector. Mortgage companies primarily originate loans to households or businesses for the purchase of residential or commercial properties and then sell most of them in the secondary market. Prior to the financial crisis that began in 2007, many mortgage companies derived a sizable portion of their business from subprime and alt-A mortgages. Since then, the number of mortgage companies has dropped dramatically.

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S125s3.t/S125s3.s: Security brokers and dealers

This table was previously numbered F.130/L.130 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Security brokers and dealers are firms that buy and sell securities for a fee, hold an inventory of securities for resale, or do both. The firms that make up this sector are those that submit information to the Securities and Exchange Commission on one of two reporting forms, either the Financial and Operational Combined Uniform Single Report of Brokers and Dealers (FOCUS) or the Report on Finances and Operations of Government Securities Brokers and Dealers (FOGS).

Brokers and dealers are an important link in the transmission of funds from savers to investors because they are a means of distributing both new security issues and those being resold on the secondary market. Dealers in U.S. government securities (FOGs reporters) that stand ready to buy from or sell to the Federal Reserve System assist in the implementation of monetary policy conducted through open market operations.

The major assets of the sector are collateral repayable from the other financial business sector in connection with securities borrowing (included in miscellaneous assets), debt securities and equities held for redistribution, customers' margin accounts, contributions to clearing funds, and security repurchase agreements (reverse repos). Sector operations are financed largely by net transactions with parent companies, customers' cash accounts, loans for purchasing and carrying securities from depository institutions, and security repurchase agreements.

In 2016:Q3, the security brokers and dealers sector has a large increase in investment by parent companies and corresponding decrease in foreign direct investment in U.S. due to new regulations implementing Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires foreign banking organizations to establish new U.S. Intermediate Holding Companies (IHCs) to act as the parent of domestic subsidiaries.

Debt securities, corporate equities, and other miscellaneous assets are reported net of short sales of securities and other short positions. This treatment avoids double counting assets in multiple sectors in the Financial Accounts. Memo items detail the short positions by instrument type. When short positions are larger than long positions, asset values are negative. Negative asset values are not reported as liabilities.

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S127.1.t/S127.1.s: Holding companies

This table was previously numbered F.131/L.131 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

In the financial accounts, the holding companies sector consists of all top-tiered bank holding companies, savings and loan holding companies, U.S. Intermediate Holding Companies (IHCs), and securities holding companies (collectively "holding companies") that file the Federal Reserve's Form FR Y-9LP, Parent Company Only Financial Statements for Large Holding Companies, FR Y-9SP, Parent Company Only Financial Statements for Small Holding Companies, or FR 2320, Quarterly Savings and Loan Holding Company Report. Holding companies required to file FR Y-9LP include those with total consolidated assets of $1 billion or more or meet other criteria, such as having a material amount of debt or equity securities outstanding that are registered with the Securities and Exchange Commission, being engaged in significant nonbanking activity, or conducting off-balance-sheet activities either directly or through a nonbank affiliate. Those holding companies required to file FR Y-9SP have total consolidated assets less than $1 billion. Form FR 2320 must be filed by top-tier savings and loan holding companies exempt from initially filing the Y-9LP or Y-9SP, because even though they own a savings and loan institution it is not their primary line of business. Mutual stock companies that file the FR 2320 are excluded because they do not hold assets or liabilities at the parent holding company level.

The major assets of holding companies, other than small amounts of loans and securities, are positions with their affiliates; this includes equity and other investments in subsidiaries and associated banks and balances due from affiliates and related depository institutions. Payables due to affiliates are listed as a liability of holding companies. Holdings of debt securities, corporate equities, and mutual fund shares are recorded at market value. Revaluations of debt securities begin 2012:Q1. The main source of funding for the sector is the issuance of corporate bonds and commercial paper.

The holding companies sector has a substantial increase in the stock of assets and liabilities in the 2009:Q1 because several large financial institutions became bank holding companies. These companies (including Goldman Sachs, Morgan Stanley, American Express, CIT Group, GMAC, Discover Financial Services, and IB Finance) had not previously been included in the financial accounts. Starting in 2012:Q1, savings and loan holding companies (SLHCs) are required to file one the Y-9 forms or the FR 2320. Starting in 2013:Q1, security holding companies (SHCs) are required to file one of the Y-9 forms. Beginning in 2012:Q3, series "breaks" reflect firms with parent assets of more than $10 billion entering or exiting the sector due to changes in a firm's regulatory filing status with respect to Y-9LP, Y-9SP or FR 2320. Changes to filing status are a result of regulatory rule changes, or the purchase/sale of a bank, savings and loan institution or other affiliate affecting a firm's filing status.

The holding companies sector has a substantial increase in the stock of assets and liabilities in 2016:Q3 due to new regulations implementing Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires foreign banking organizations to establish new IHCs to act as the parent of domestic subsidiaries. IHCs are required to file Federal Reserve Board Form FR Y-9LP. IHCs' investment in affiliates is included in miscellaneous assets. Equity investment in the IHCs is shown as foreign direct investment, a new liability of the holding company sector (tables S127.1.t, S127.1.s, F81.t, and F81.s). Previously, this equity was recorded as foreign direct investment in the securities brokers and dealers sector.

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S127.2.t/S127.2.s: Other financial business

This table was previously numbered F.132/L.132 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The other financial business sector consists of several types of financial institutions and entities as described below:

1. Subsidiaries of foreign bank and nonbank financial firms that raise funds in the U.S. commercial paper market and transfer the proceeds to foreign banking offices in the United States or to foreign parent companies abroad. In the financial accounts, this transfer of funds is reported as negative foreign direct investment (FDI) in the United States since by convention, FDI is reported as an asset of the parent and a liability of the subsidiary. The treatment of these transactions in the financial accounts is under review.

2. Financial holding companies, other than holding companies shown on tables S127.1.t and S127.1.s, are included where data are available. The issuance of preferred shares to the federal government under the Troubled Asset Relief Program, or TARP, by American International Group, Inc. (AIG), a holding company, is recorded as a corporate equity liability with no specific corresponding asset.

3. Custodial accounts are bookkeeping entities established to hold cash collateral put up by security dealers to back securities they borrow to cover short sales and delivery failures. In the financial accounts, these security transactions are listed as securities loaned (net). The collateral is returned to the dealers when the borrowed securities are returned. While held in custody, the collateral is invested in money market fund shares, commercial paper, and corporate bonds.

4. Beginning in 2008, the Federal Reserve created several limited liability companies (LLCs) to which loans were extended to help stabilize the financial system. These LLCs included (1) Maiden Lane LLC to facilitate the arrangements associated with JPMorgan Chase & Co.'s acquisition of the Bear Stearns Companies, Inc.; (2) Maiden Lane II LLC to purchase residential mortgage-backed securities from the U.S. securities lending reinvestment portfolio of AIG subsidiaries; (3) Maiden Lane III LLC to purchase collateralized debt obligations on which AIG had written credit default swap contracts; and (4) Commercial Paper Funding Facility LLC. Loans were also made to AIG. Loans in the other financial business sector are recorded as depository institution loans n.e.c., with corporate and foreign bonds and open-market paper serving as the corresponding assets. AIA Aurora LLC and ALICO Holdings LLC, two limited liability companies created to hold all the outstanding common stock of American International Assurance Company, Ltd. (AIA), and American Life Insurance Company (ALICO), which are two life insurance subsidiaries of AIG, are also included in this sector. The stocks of AIA and ALICO are shown as an asset, and the central bank sector's holdings of preferred shares in AIA Aurora LLC and ALICO Holdings LLC are shown as a liability.

5. Loans extended by the federal government to the Term Asset-Backed Securities Loan Facility, or TALF, LLC and to funds associated with the Public-Private Investment Program (PPIP) are recorded as an "other loans and advances" liability. The other financial business sector's equity interest under PPIP is also shown as a liability.

6. Beginning 2000:Q1, assets and liabilities of U.S. central clearing parties (CCP) are included in the sector. CCPs included are the Chicago Mercantile Exchange, Inc., the Depository Trust Company, Fixed Income Clearing Corporation, National Securities Clearing Corporation, ICE Clear Credit L.L.C, and the Options Clearing Corporation. Liabilities of CCPs are mainly required member contributions to clearing or participant funds which are used to cover obligations of clearing members. Contributions to clearing funds are treated as other loans and advances in the Financial Accounts. Some CCPs raise funds through commercial paper which is held in deposits. CCPs invest member clearing fund contributions in highly liquid assets such as bank deposits, deposits at Federal Reserve banks, money market funds, repurchase agreements, and Treasuries. The five CCPs mentioned above are designated financial market utilities (DFMU) under the Dodd-Frank Act of 2010. More information on DFMUs at: https://www.federalreserve.gov/paymentsystems/designated_fmu_about.htm. CCP data is from publicly available quarterly and annual financial statements.

7. Due to COVID-19 response, in 2020:Q2 the Federal Reserve, established five funding, credit, and liquidity facilities as special purpose vehicles (SPVs): the Corporate Credit Facilities (CCF), the Main Street Lending Program (MSLP), the Term Assets Lending Facility (TALF), the Municipal Liquidity Facility (MLF), and the Commercial Paper Funding Facility (CPFF). The Federal Reserve made loans to these SPVs, which are classified in the other financial business sector. More information on these SPVs is available at https://www.federalreserve.gov/reports-to-congress-covid-19.htm

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S1281.t/S1281.s: Life insurance companies

This table was previously numbered F.116/L.116 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for life insurance companies encompasses all legal reserve life insurance companies in the United States. These companies write about 98 percent of the life insurance policies in effect in the United States (the remaining policies are written by fraternal societies, savings banks, and the federal government); they also administer individual and group annuities. Life insurers included in this sector file the Life and Health Insurance financial statements with state regulators. While these companies often provide some health insurance through products such as disability insurance and long-term care insurance, companies that are solely health insurance providers, including health maintenance organizations, are regulated separately, and are not included in the sector for life insurance companies.

The companies' major sources of funds are premiums and annuity considerations; they also receive substantial investment income from their holdings of financial assets. Holdings of debt securities (beginning 1996:Q4), corporate equities, and mutual fund shares are recorded at market value. Their major liabilities are reserves set aside for future benefit payments under life insurance and annuity contracts.

A memo item shows life insurance companies' liability for collateral received through securities lending activities. It is included in the instrument category other miscellaneous liabilities.

Another set of memo items shows the total obligation to U.S. policyholders, the amounts that have been reinsured with U.S. and non-U.S. reinsurers, and the total obligation to non-U.S. policyholders that has been assumed by U.S. reinsurers from non-U.S. insurers.

An October 12, 2018 FEDS Note, "Accounting for Reinsurance Transactions in the Financial Accounts of the United States," by Michael Batty describes the treatment of reinsurance in more detail and is available at https://www.federalreserve.gov/econres/notes/feds-notes/accounting-for-reinsurance-transactions-in-the-financial-accounts-of-the-united-states-20181012.htm.

Detailed financial asset and liability data can be found separately for general accounts of life insurers on tables S1281.1.t and S1281.1.s and for separate accounts of life insurers on tables S1281.2.t and S1281.2.s.

Note: Transactions between unaffiliated U.S. insurers, and between a U.S. insurer and a foreign insurer, are recorded gross of reinsurance. That is, both the direct insurer and reinsurer report liabilities for paying future policy claims. The liability of the reinsurer is an asset of the direct insurer, and the liability of the direct insurer is an asset of the policyholder.

Note: Funding agreements sold by life insurance companies to domestic issuers of asset-backed securities (ABS) are shown as an identified miscellaneous liability. Funding agreements sold to foreign special purpose vehicles are included in foreign direct investment in US. Funding agreements with the FHLB are included in other loans and advances. A March 3, 2016 FEDS Note, "Funding Agreement-Backed Securities in the Financial Accounts of the United States," by Elizabeth Holmquist and Maria Perozek describes the treatment of funding agreement-backed securities in more detail. The note is available online at http://www.federalreserve.gov/econresdata/notes/feds-notes/2016/funding-agreement-backed-securities-in-the-financial-accounts-of-the-united-states-20160303.html.

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S1281.1.t/S1281.1.s: Life insurance companies: general accounts

This table was previously numbered F.116.g/L.116.g prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for life insurance companies encompasses all legal reserve life insurance companies in the United States. The general accounts of life insurers are used to fund contractual obligations that provide a fixed benefit or guaranteed rate of return. Such contractual obligations include, but are not limited to, term life insurance policies, whole life insurance policies, disability policies, and fixed annuities.

Holdings of debt securities (beginning 1996:Q4), corporate equities, and mutual fund shares are recorded at market value.

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S1281.2.t/S1281.2.s: Life insurance companies: separate accounts

This table was previously numbered F.116.s/L.116.s prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for life insurance companies encompasses all legal reserve life insurance companies in the United States. Separate accounts are legally separate from life insurers' general accounts and are typically used to fund retirement investment products that pass most of the market risk through to policyholders, including variable life insurance policies and variable annuities. A large share of the assets backing these products is invested in corporate equities and mutual funds. However, many variable annuity contracts include guaranteed living benefit riders that provide minimum income or withdrawal benefits regardless of the performance of the account assets. Reserves backing these guarantees are held in the general account, as required for most guaranteed benefits issued by life insurers.

Holdings of debt securities (beginning 1996:Q4), corporate equities, and mutual fund shares are recorded at market value.

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S1282.1.t/S1282.1.s: Property-casualty insurance companies

This table was previously numbered F.115/L.115 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for property-casualty insurance companies encompasses all companies licensed to write property or casualty insurance policies in the United States, excluding state funds that are established by states to provide workers' compensation coverage. Also excluded from the sector are captive insurers with non-insurance parents, which are not required to file financial statements with state regulators. We estimate that the excluded firms represent approximately two percent of U.S. property-casualty insurance business.

Property-casualty firms provide many types of insurance, such as fire, group and other accident and health, homeowners, medical malpractice, workers' compensation, automobile liability and physical damage, aircraft, reinsurance, burglary and theft, earthquake, credit, mortgage guaranty, and international.

The major assets of the companies that make up the sector are fixed-income securities and equities. Holdings of debt securities (beginning 2001:Q4), corporate equities, and mutual fund shares are recorded at market value. The companies' primary liabilities are amounts payable to policyholders for incurred losses, loss-adjustment expenses associated with those claims, and unearned premium reserves.

A memo item shows property-casualty insurance companies' liability for collateral received through securities lending activities. It is included in the instrument category other miscellaneous liabilities.

Two additional memo items on table S1282.1.s show the total assets of financial guaranty insurers and mortgage guaranty insurers as reported in their statutory financial statements. Financial assets and liabilities of these guaranty insurers are included in the property-casualty insurance companies sector; however, Financial Accounts measures of debt securities are reported at market value.

A final set of memo items shows the total obligation to U.S. policyholders, the amounts that have been reinsured with U.S. and non-U.S. reinsurers, and the total obligation to non-U.S. policyholders that has been assumed by U.S. reinsurers from non-U.S. insurers.

An October 12, 2018 FEDS Note, "Accounting for Reinsurance Transactions in the Financial Accounts of the United States," by Michael Batty describes the treatment of reinsurance in more detail and is available at https://www.federalreserve.gov/econres/notes/feds-notes/accounting-for-reinsurance-transactions-in-the-financial-accounts-of-the-united-states-20181012.htm.

Note: Transactions between unaffiliated U.S. insurers, and between a U.S. insurer and a foreign insurer, are recorded gross of reinsurance. That is, both the direct insurer and reinsurer report liabilities for paying future policy claims. The liability of the reinsurer is an asset of the direct insurer, and the liability of the direct insurer is an asset of the policyholder.

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S129.t/S129.s: Private and public pension funds

This table was previously numbered F.117/L.117 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for private and public pension funds equals the sum of private pension funds, state and local government employee pension funds, and federal government employee pension funds defined benefit plans and defined contribution plans (including 401(k) type plans).

The liabilities of the sector are the pension entitlements of the household sector. Holdings of debt securities, corporate equities, and mutual fund shares are recorded at market value.

A memo item at the bottom of the table shows household retirement assets in tax-deferred accounts, which includes, in addition to the defined benefit and defined contribution plans included on this table, individual retirement plans (IRAs) and annuities at life insurance companies.

Another memo item on S129.s shows the funding status of the DB plans.

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S129.1.t/S129.1.s: Private pension funds

This table was previously numbered F.118/L.118 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for private pension funds includes defined benefit (DB) and defined contribution (DC) plans offered to employees of private-sector employers. The sector includes all "qualified plans" required to file form 5500 with the Internal Revenue Service, the Department of Labor, and the Pension Benefit Guaranty Corporation.

The sector does not include individual retirement accounts, Keogh plans, or pension funds for government workers, which are reported in other sectors. Also excluded are DB assets that have been transferred to insurance companies for the purpose of paying pension benefits to retirees; those assets are included in the life insurance sector.

This sector includes unallocated insurance contracts, which are products sold by life insurance companies to pension funds, such as annuities and guaranteed investment contracts.

Liabilities of private pension funds are equal to the actuarial liabilities of DB plans (that is, accrued benefits to be paid in the future). Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." The sponsor is assumed to be a nonfinancial corporate business. Pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2006:Q1), corporate equities, and mutual fund shares are recorded at market value.

A memo item at the bottom of the table shows total financial assets of DB and DC plans. Detailed financial asset data can be found separately for private DB plans on tables S129s1.1.t and S129s1.1.s and for private DC plans on table S129s2.1.t and S129s2.1.s.

Another memo item on S129.1.s shows the funding status of the DB plans.

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S129s1.1.t/S129s1.1.s: Private defined benefit pension funds

This table was previously numbered F.118.b/L.118.b prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for private defined benefit (DB) pension funds includes DB plans sponsored by private employers for the benefit of their employees and retirees. Under a DB plan, workers accrue promises for retirement payments, typically according to a formula based on age, years of service, and salary. Employers and employees contribute assets that are set aside to cover the promised payments; however, workers do not own or direct the assets until the funds are paid in retirement, typically as an annuity. The sector includes all DB "qualified plans" that are required to file form 5500 with the Internal Revenue Service, the Department of Labor, and the Pension Benefit Guaranty Corporation.

This sector does not include DB assets that have been transferred to insurance companies for the purposes of paying pension benefits to retirees; those assets are included in the life insurance sector.

This sector includes unallocated insurance contracts, which are products sold by life insurance companies to pension funds, such as annuities and guaranteed investment contracts.

Liabilities of private DB pension funds are equal to the actuarial liabilities of DB plans (that is, accrued benefits to be paid in the future). Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." The sponsor is assumed to be a nonfinancial corporate business. Pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2006:Q1), corporate equities, and mutual fund shares are recorded at market value.

An October 31, 2014 FEDS Note, "Introducing Actuarial Liabilities and Funding Status of Defined-Benefit Pensions in the Financial Accounts of the United States" by Irina Stefanescu and Ivan Vidangos, describes the new accrual accounting of defined-benefit pension liabilities in more detail. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2014/introducing-actuarial-liabilities-funding-status-defined-benefit-pensions-us-financial-accounts-20141031.html.

For additional background information on actuarial liabilities of defined benefit pension funds, see Marshall Reinsdorf and David Lenze (2009), "Defined Benefit Pensions and Household Income and Wealth," Bureau of Economic Analysis, Survey of Current Business, August, pp. 50-62, https://apps.bea.gov/scb/pdf/2009/08%20August/0806_benefits.pdf.

These data are a component of total private pension funds shown on tables S129.1.t and S129.1.s.

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S129s2.1.t/S129s2.1.s: Private defined contribution pension funds

This table was previously numbered F.118.c/L.118.c prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for private defined contribution (DC) pension funds includes DC plans sponsored by private employers for the benefit of their employees and retirees. Under a DC plan, the most common of which is the 401(k) plan, employers and workers contribute funds to individual accounts established for each participant. Workers typically direct the investments, and they may withdraw or transfer the assets after age 59-1/2 or after separating from the employer. The sector includes all DC "qualified plans" that are required to file form 5500 with the Internal Revenue Service, the Department of Labor, and the Pension Benefit Guaranty Corporation. 403(b) plans are typically sponsored by private academic and nonprofit employers.

Private pension defined contribution 403(b) variable annuity mutual fund plan data (CREF accounts assets) begin in 1980q1. Private pension defined contribution 403(b) unallocated insurance contracts and 403(b) non-variable annuity mutual fund data begin in 1997q1.

This sector does not include individual retirement accounts or Keogh plans.

This sector includes unallocated insurance contracts, which are products sold by life insurance companies to pension funds, such as annuities and guaranteed investment contracts.

The liabilities of the private DC pension sector are equal to the value of the assets. These pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2006:Q1), corporate equities, and mutual fund shares are recorded at market value.

These data are a component of total private pension funds shown on tables S129.1.t and S129.1.s.

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S129.2.t/S129.2.s: Federal government employee pension funds

This table was previously numbered F.119/L.119 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for Federal Government Employee Pension Funds includes defined benefit (DB) and defined contribution (DC) pension funds for the purpose of providing retirement benefits to federal workers.

The DB plans include the Civil Service Retirement and Disability Fund, the Railroad Retirement Board, the judicial retirement fund, the Military Retirement Fund, the Foreign Service Retirement and Disability Fund, and the National Railroad Retirement Investment Trust. The Civil Service Retirement Fund covers the Civil Service Retirement System (CSRS)--a defined benefit plan covering federal employees hired before 1984--and the Federal Employees Retirement System (FERS)--a defined benefit plan, supplemental to Social Security, for federal employees hired after 1983 and for employees formerly covered by CSRS who elected to join FERS. Federal government pension entitlements do not include the Social Security system. The assets of the DB plans, except the National Railroad Retirement Investment Trust, are nonmarketable Treasury securities which are classified as other loans and advances to the federal government. The National Railroad Retirement Investment Trust is a trust fund invested in private assets for the benefit of railroad workers. Assets of this fund are invested in Treasury securities, agency- and GSE-backed securities, corporate and foreign bonds, and equities.

The DC plans include the FERS Thrift Savings Plan, a supplemental retirement option available to federal employees beginning in 1984. Assets of this plan are invested by the employee in nonmarketable Treasury securities (classified as other loans and advances to the federal government), agency- and GSE-backed securities, corporate and foreign bonds, and equities.

Liabilities of federal government employee pension funds are equal to the actuarial liabilities of DB plans (that is, accrued benefits to be paid in the future) and the assets of the DC plan. Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." The sponsor is the federal government. Suspended investments in the DC Thrift Savings Plan G Fund nonmarketable Treasury securities (other loans and advances) by the Treasury are treated as a loan by the plan to the federal government. Pension entitlements are assets of the household sector. Holdings of debt securities (excluding nonmarketable Treasury securities), corporate equities, and mutual fund shares are recorded at market value.

A memo item at the bottom of the table shows total financial assets of DB and DC plans. Another memo item on S129.2.s shows the funding status of the DB plans. Detailed financial asset data can be found separately for federal DB plans on tables S129s1.2.t and S129s1.2.s and for federal DC plans on table S129s2.2.t and S129s2.2.s.

An April 21, 2014 FEDS Note, "The Federal Debt-Limit Standoff of 2013 in the Financial Accounts of the United States" by Ivan Vidangos, describes the extraordinary measures used by the Treasury Department during the 2013 legislative standoff over raising the federal statutory debt limit. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2014/federal-debt-limit-standoff-of-2013-in-the-financial-accounts-of-the-united-states-20140421.html.

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S129s1.2.t/S129s1.2.s: Federal government employee defined benefit pension funds

This table was previously numbered F.119.b/L.119.b prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Federal government DB plans include the Civil Service Retirement and Disability Fund, the Railroad Retirement Board, the judicial retirement fund, the Military Retirement Fund, the Foreign Service Retirement and Disability Fund, and the National Railroad Retirement Investment Trust. The Civil Service Retirement Fund covers the Civil Service Retirement System (CSRS)--a defined benefit plan covering federal employees hired before 1984--and the Federal Employees Retirement System (FERS)--a defined benefit plan, supplemental to Social Security, for federal employees hired after 1983 and for employees formerly covered by CSRS who elected to join FERS. Federal government pension entitlements do not include the Social Security system. The assets of the DB plans, except the National Railroad Retirement Investment Trust (NRRIT), are nonmarketable Treasury securities classified as other loans and advances made to the federal government. The National Railroad Retirement Investment Trust is a trust fund invested in private assets for the benefit of railroad workers. Assets of this fund are invested in Treasury securities, agency- and GSE-backed securities, corporate and foreign bonds, and equities.

Liabilities of federal government DB plans are equal to the actuarial liabilities of the plans (that is, accrued benefits to be paid in the future). Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." The sponsor is the federal government. Pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2002:Q3 for debt securities held by NRRIT), corporate equities, and mutual fund shares are recorded at market value.

An October 31, 2014 FEDS Note, "Introducing Actuarial Liabilities and Funding Status of Defined-Benefit Pensions in the Financial Accounts of the United States" by Irina Stefanescu and Ivan Vidangos, describes the new accrual accounting of defined-benefit pension liabilities in more detail. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2014/introducing-actuarial-liabilities-funding-status-defined-benefit-pensions-us-financial-accounts-20141031.html.

For additional background information on actuarial liabilities of defined benefit pension funds, see Marshall Reinsdorf and David Lenze (2009), "Defined Benefit Pensions and Household Income and Wealth," Bureau of Economic Analysis, Survey of Current Business, August, pp. 50-62, https://apps.bea.gov/scb/pdf/2009/08%20August/0806_benefits.pdf.

These data are a component of total federal government employee pension funds shown on tables S129.2.t and S129.2.s.

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S129s2.2.t/S129s2.2.s: Federal government employee defined contribution pension funds

This table was previously numbered F.119.c/L.119.c prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

Federal government DC plans consist of the Federal Employees Retirement System (FERS) Thrift Savings Plan, a supplemental DC retirement option available to federal employees beginning in 1984. Assets of this plan are invested by the employee in nonmarketable Treasury securities (classified as other loans and advances made to the federal government), agency- and GSE-backed securities, corporate and foreign bonds, and equities. The Thrift Savings Plan G Fund opened in 1987q2. The C and F fund opened in 1988q1, and the I and S funds opened in 2001q2.

Liabilities of federal government DC plans are equal to the assets of the DC plans. Suspended investments in the Thrift Savings Plan G Fund nonmarketable Treasury securities (other loans and advances) by the Treasury are treated as a loan by the plan to the federal government. Pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2001:Q4 and excluding nonmarketable Treasury securities from the G Fund), corporate equities, and mutual fund shares are recorded at market value.

These data are a component of total federal government employee pension funds shown on tables S129.2.t and S129.2.s.

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S129.3.t/S129.3.s: State and local government employee pension funds

This table was previously numbered F.120/L.120 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for state and local government employee pension funds consists of retirement systems that are administered by a recognized unit of a state or local government as defined by the Bureau of the Census and whose members are public employees compensated with public funds. The sector includes the defined benefit (DB) and defined contribution (DC) pension funds of both state governments and local government entities such as counties, municipalities, townships, school districts, and special districts. US territories are excluded.

Liabilities of the state and local government employee pension funds are equal to the actuarial liabilities of these DB plans (that is, accrued benefits to be paid in the future). Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." The sponsors are the state and local governments. Pension entitlements are assets of the household sector. Holdings of debt securities (for DB pension funds beginning 2002:Q2), corporate equities, and mutual fund shares are recorded at market value.

DC plans include 403(b) plans and 457 plans that are sponsored by state and local governments. For DC plans, pension entitlements are equal to assets, and there is no claim to the sponsor.

A memo item on S129.3.s shows the funding status of the DB plans. Detailed financial asset data can be found separately for state and local DB plans on tables S129s1.3.t and S129s1.3.s and for state and local DC plans on table S129s2.3.t and S129s2.3.s.

An April 20, 2015 FEDS Note, "Defined-Contribution Pension Plans for State and Local Government Employees in the Financial Accounts of the United States" by Matthew Hoops, Irina Stefanescu, and Ivan Vidangos, describes recent changes in the treatment of this sector in more detail. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2015/defined-contribution-pension-plans-for-state-and-local-government-employees-20150420.html.

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S129s1.3.t/S129s1.3.s: State and local government employee defined benefit pension funds

This table was previously numbered F.120.b/L.120.b prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for state and local government employee defined benefit (DB) plans include DB plans administered by a recognized unit of a state or local government as defined by the Bureau of the Census and whose members are public employees compensated with public funds. The sponsors are state governments and local government entities such as counties, municipalities, townships, school districts, and special districts. US territories are excluded.

Under a DB plan, workers accrue promises for retirement payments, typically according to a formula based on age, years of service, and salary. Employers and employees contribute assets that are set aside to cover the promised payments; however, workers do not own or direct the assets until the funds are paid in retirement, typically as an annuity.

This sector does not include DB assets that have been transferred to insurance companies for the purposes of paying pension benefits to retirees; those assets are included in the life insurance sector.

Liabilities of public DB pension funds are equal to the actuarial liabilities of DB plans (that is, accrued benefits to be paid in the future). Underfunding of DB plans is included as an asset of the plans and is shown on the table as "claims of pension fund on sponsor." Pension entitlements are assets of the household sector. Holdings of debt securities (beginning 2002:Q2), corporate equities, and mutual fund shares are recorded at market value.

An October 31, 2014 FEDS Note, "Introducing Actuarial Liabilities and Funding Status of Defined-Benefit Pensions in the Financial Accounts of the United States" by Irina Stefanescu and Ivan Vidangos, describes the new accrual accounting of defined-benefit pension liabilities in more detail. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2014/introducing-actuarial-liabilities-funding-status-defined-benefit-pensions-us-financial-accounts-20141031.html.

For additional background information on actuarial liabilities of defined benefit pension funds, see Marshall Reinsdorf and David Lenze (2009), "Defined Benefit Pensions and Household Income and Wealth," Bureau of Economic Analysis, Survey of Current Business, August, pp. 50-62, https://apps.bea.gov/scb/pdf/2009/08%20August/0806_benefits.pdf.

These data are a component of total state and local government employee pension funds shown on tables S129.3.t and S129.3.s.

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S129s2.3.t/S129s2.3.s: State and local government employee defined contribution pension funds

This table was previously numbered F.120.c/L.120.c prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The sector for state and local government employee defined contribution (DC) pension funds consists of retirement systems that are administered by a recognized unit of a state or local government as defined by the Bureau of the Census and whose members are public employees compensated with public funds. The sponsors are state governments and local government entities such as counties, municipalities, townships, school districts, and special districts. US territories are excluded.

Under a DC plan, employers and workers contribute funds to individual accounts established for each participant. Workers typically direct the investments, and they may withdraw or transfer the assets after age 59-1/2 or after separating from the employer. The sector includes 403(b) and 457 plans that are sponsored by state and local governments. For DC plans, pension entitlements are equal to assets, and there is no claim on the sponsor. Pension entitlements are assets of the household sector. Holdings of corporate equities, and mutual fund shares are recorded at market value.

State and Local 403(b) variable annuity mutual fund plan data (CREF accounts assets) begin in 1980q1. Data for state and local 457 plans, 403(b) unallocated insurance contracts, and 403(b) non-variable annuity mutual funds begin in 1997q1.

This sector does not include individual retirement accounts or Keogh plans.

This sector includes unallocated insurance contracts, which are products sold by life insurance companies to pension funds, such as annuities and guaranteed investment contracts.

These data are a component of total state and local government employee pension funds shown on tables S129.3.t and S129.3.s.

An April 20, 2015 FEDS Note, "Defined-Contribution Pension Plans for State and Local Government Employees in the Financial Accounts of the United States" by Matthew Hoops, Irina Stefanescu, and Ivan Vidangos, describes recent changes in the treatment of this sector in more detail. The note is available at https://www.federalreserve.gov/econresdata/notes/feds-notes/2015/defined-contribution-pension-plans-for-state-and-local-government-employees-20150420.html.

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S2.t/S2.s: Rest of the world

This table was previously numbered F.133/L.133 prior to the new numbering scheme implemented in the June 11, 2026, release of the Z.1, "Financial Accounts of the Unites States."

The rest of the world sector consists of all entities (individuals, firms, institutions, and governments) not residing in the United States that engage in transactions with U.S. residents. The table reflects the participation of foreigners in U.S. markets only; transactions exclusively among foreigners are not included.

In the financial accounts, this "sector is" constructed from the perspective of the foreigners, resulting in parallel treatment of the rest of the world and the domestic sectors in terms of their roles as suppliers and users of funds. Thus, the acquisition of domestic assets by both the rest of the world and domestic sectors provides funding in U.S. capital markets, and increases in the liabilities and equity of the rest of the world and domestic sectors represent funding supplied by U.S. markets.

Holdings and amounts outstanding of debt securities, and holdings of corporate equities and mutual fund shares are recorded at market value.

Data for gross saving and net capital transfers paid are from the national income and product accounts, which treat U.S.-affiliated areas as foreign. Data for financial assets and liabilities are derived from the BOP accounts, which include U.S.-affiliated areas as part of the United States. The difference in the treatment of U.S.-affiliated areas in this sector is accounted for in the sector discrepancy.

Reverse repurchase agreements conducted through the Federal Reserve's Foreign Repo Pool are included in the rest of the world's security repurchase agreement asset.

Through 1992, corporate bonds include net issues by Netherlands Antillean financial subsidiaries, and U.S. direct investment abroad excludes net inflows from those bond issues.

Memo items on the stocks outstanding table (S2.s) show the market value of foreign equities held by U.S. residents and the gross positive and negative fair value positions of financial derivatives. These memo items are not included in the financial asset and liability totals shown above.

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