Within the liability section of this example bank's balance sheet, we've got some lines that relate to unsecured borrowings.

You can see here that they have both short-term unsecured borrowings and also long-term unsecured borrowings.

And these are both pretty big numbers.

We've got about 70 billion of short-term unsecured borrowings and 243 billion of long-term unsecured borrowings.

So it's a substantial liability on this bank's balance sheet.

The unsecured borrowings provide funding long-term funding typically for the bank's business, and we'll see in a moment that actually most of the unsecured borrowings, even if they're term originally started out as long-term borrowings, but just are repayable within the next 12 months.

The majority of these short term borrowings are shown out fair value or mark to market 50 billion out of the 70 billion total.

Now, the reality is because they have a short-term left to maturity that actually the mark to market effect each year is not gonna be that significant.

And also because most of these are financial instruments issued by the bank themselves, such as bonds, there's not an identical security out there in the financial markets because there's not another bank exactly like this one.

This means they wouldn't be at level one of the fair value hierarchy, but instead will be at level two or level three.

So in a lot of cases there's some very, very similar securities out there, which we can value these bonds against, which will make this level two.

But in any case, the valuation effect of these marked market liabilities is not gonna be that significant.

If we look at the footnotes for this bank's unsecured borrowings, and specifically the short-term section to begin with, you can see that by far the bulk of this short-term security is actually the current portion of unsecured long-term liabilities.

In other words, their long-term borrowings, which just happen to be due to be repaid within the next 12 months.

There's also some hybrid financial instruments, which are typically liabilities with some type of derivative attached.

There's no commercial paper in 2024, and there are some other genuine short-term borrowings.

So these are the long-term unsecured borrowings.

We've got a fairly even repayment split with around 40 billion due for repayment in 2025.

That's included within the short-term borrowings.

And 2026 and 2027 fall into around 30 billion for 2028 and 2029.

This is the type of maturity profile you'll expect to see because the bank doesn't want to suddenly have to refinance all of the 242 billion in financial markets in any one year.

They want it spread out over time, and that's one of the reasons why the maturity profile is spread out like this to reduce refinancing risk.

There is, however, a significant amount of debt, which isn't due for repayment Until 2030 or later, amounting to over 40% of the long-term borrowings, demonstrating that this really is providing long-term financing for this bank.

Also, we've got a nice breakdown to show that the debt isn't being issued from the same company.

There's the holding company, which is called Group Incorporated, and then also there's some issuance of debt from Goldman Sachs subsidiaries, but by Father Bulk, 168 billion outta the 243 billion is issued from the group company, the top company within the Goldman Sachs group.

Another breakdown that we're provided with is the interest rate type on these borrowings.

Some have a fixed rate, meaning that they have a fixed rate of interest until maturity, and some are floating rate, meaning that they're linked to some type of market benchmark for interest rates.

And as the benchmark changes, so will the interest rate the bank has to pay, however, whether they're fixed rate or floating rate, the interest on these borrowings will appear as an expense in the income statement for each period.

The other breakdown we've got here is whether those securities are issued in US dollars or not.

The biggest amount by a significant margin is the US dollar denominated debt, which would make sense for a US institution like the bank that we're looking at.