Skip to main content
Midas Edge

MORGAN STANLEY

For the period ended Dec 31, 2025. Filed Feb 19, 2026.

View on SEC.gov

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2025 · Filed Feb 19, 2026

MS$187.56+0.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits
Contents

7. Investment Securities

  1. Investment Securities

AFS and HTM Securities

At December 31, 2025
$ in millionsAmortizedCost1GrossUnrealizedGainsGrossUnrealizedLossesFairValue
AFS securities
U.S. Treasury securities$80,745$187$2580,907
U.S. agency securities224,031241,94322,112
Agency CMBS5,50412865,219
State and municipal securities1,75410171,747
FFELP student loan ABS348616481
Unallocated basis adjustment42—2—
Total AFS securities112,5222232,279110,466
HTM securities
U.S. Treasury securities12,299—66311,636
U.S. agency securities238,303676,78531,585
Agency CMBS709—43666
Non-agency CMBS1,77912631,728
Total HTM securities53,090797,55445,615
Total investment securities$165,612$302$9,833$156,081
At December 31, 2024
$ in millionsAmortizedCost1GrossUnrealizedGainsGrossUnrealizedLossesFairValue
AFS securities
U.S. Treasury securities$70,160$62$388$69,834
U.S. agency securities224,11362,65221,467
Agency CMBS5,704—3885,316
State and municipal securities1,3731841,387
FFELP student loan ABS361219604
Unallocated basis adjustment4(2)2——
Total AFS securities101,960893,44198,608
HTM securities
U.S. Treasury securities16,885—1,08215,803
U.S. agency securities241,58248,59232,994
Agency CMBS1,154—881,066
Non-agency CMBS1,45031131,340
Total HTM securities61,07179,87551,203
Total investment securities$163,031$96$13,316$149,811

  1. Amounts are net of any ACL.

  2. U.S. agency securities consist mainly of agency mortgage pass-through pool securities, CMOs and agency-issued debt.

  3. Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding.

  4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis

adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 herein for additional information.

AFS Securities in an Unrealized Loss Position

At December 31,2025At December 31,2024
$ in millionsFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLosses
U.S. Treasury securities
Less than12 months$47$—$18,338$65
12 months or longer7,4402519,629323
Total7,4872537,967388
U.S. agency securities
Less than12 months75—76511
12 months or longer17,2901,94318,9962,641
Total17,3651,94319,7612,652
Agency CMBS
Less than12 months133———
12 months or longer4,6752865,018388
Total4,8082865,018388
State and municipal securities
Less than12 months36042422
12 months or longer38213622
Total742173044
FFELP student loan ABS
12 months or longer38364429
Total38364429
Unallocated basis adjustment—2——
Total AFS securities in an unrealized loss position
Less than12 months615419,34578
12 months or longer30,1702,27344,1473,363
Unallocated basis adjustment—2——
Total$30,785$2,279$63,492$3,441

For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of December 31, 2025 and December 31, 2024, the securities in an unrealized loss position are predominantly investment grade.

The HTM securities net carrying amounts at December 31, 2025 and December 31, 2024 reflect an ACL of $60 million and $52 million, respectively, predominantly related to Non-agency CMBS. See Note 2 for a description of the ACL methodology used for HTM Securities.

As of December 31, 2025 and December 31, 2024,97% and 98%, respectively, of the Firm’s portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption ofzero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency CMBS securities, for which the expected credit losses were insignificant and were predominantly on accrual status at December 31, 2025 and December 31, 2024.

Table of Contents

Notes to Consolidated Financial Statements

See Note 15 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, and FFELP student loan ABS.

Investment Securities by Contractual Maturity

At December 31, 2025
$ in millionsAmortizedCost1FairValueAnnualized Average Yield2,3
AFS securities
U.S. Treasury securities:
Due within 1 year$28,824$28,8703.7%
After 1 year through 5 years51,17851,2913.8%
After 5 years through 10 years7437464.0%
Total80,74580,907
U.S. agency securities:
Due within 1 year23220.6%
After 1 year through 5 years1851761.8%
After 5 years through 10 years3993711.6%
After 10 years23,42421,5433.4%
Total24,03122,112
Agency CMBS:
Due within 1 year5965912.1%
After 1 year through 5 years3,7633,6741.8%
After 5 years through 10 years1931891.3%
After 10 years9527651.6%
Total5,5045,219
State and municipal securities:
Due within 1 year78784.8%
After 1 year through 5 years2432393.6%
After 5 years through 10 years1131144.9%
After 10 years1,3201,3164.5%
Total1,7541,747
FFELP student loan ABS:
Due within 1 year59574.6%
After 1 year through 5 years47464.6%
After 5 years through 10 years26253.9%
After 10 years3543534.9%
Total486481
Unallocated basis adjustment4:2——
Total AFS securities112,522110,4663.6%
At December 31, 2025
$ in millionsAmortizedCost1FairValueAnnualized Average Yield2
HTM securities
U.S. Treasury securities:
Due within 1 year$5,435$5,4162.2%
After 1 year through 5 years5,1084,9612.4%
After 5 years through 10 years2031791.3%
After 10 years1,5531,0802.3%
Total12,29911,636
U.S. agency securities:
After 1 year through 5 years1401352.0%
After 5 years through 10 years28282.2%
After 10 years38,13531,4222.1%
Total38,30331,585
Agency CMBS:
Due within 1 year2021991.1%
After 1 year through 5 years3543381.4%
After 5 years through 10 years1301101.6%
After 10 years23191.3%
Total709666
Non-agency CMBS:
Due within 1 year1381354.9%
After 1 year through 5 years8478244.6%
After 5 years through 10 years3212984.5%
After 10 years4734716.9%
Total1,7791,728
Total HTM securities53,09045,6152.2%
Total investment securities$165,612$156,0813.2%

  1. Amounts are net of any ACL.

  2. Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives.

  3. At December 31, 2025, the annualized average yield, including the interest rate swap accrual of related hedges, was 3.7% for AFS securities contractually maturing within 1 year and 3.7% for all AFS securities.

  4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 herein for additional information.

Gross Realized Gains (Losses) on Sales of AFS Securities

$ in millions202520242023
Gross realized gains$31$52$70
Gross realized (losses)(1)—(21)
Total1$30$52$49
  1. Realized gains and losses are recognized in Other revenues in the income statement.
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.