Fair value hierarchy December 31, 2019 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 14,561  $ —  $ —  $ 14,561  Securities borrowed —  6,237  —  —  6,237  Trading assets: —  Debt instruments: —  Mortgage-backed securities: —  U.S. GSEs and government agencies —  44,510  797  —  45,307  Residential – nonagency —  1,977  23  —  2,000  Commercial – nonagency —  1,486  4  —  1,490  Total mortgage-backed securities —  47,973  824  —  48,797  U.S. Treasury, GSEs and government agencies 78,289  10,295  —  —  88,584  Obligations of U.S. states and municipalities —  6,468  10  —  6,478  Certificates of deposit, bankers’ acceptances and commercial paper —  252  —  —  252  Non-U.S. government debt securities 26,600  27,169  155  —  53,924  Corporate debt securities —  17,956  558  —  18,514  Loans —  6,340  673  —  7,013  Asset-backed securities —  2,593  37  —  2,630  Total debt instruments 104,889  119,046  2,257  —  226,192  Equity securities 71,890  244  196  —  72,330  Physical commodities 3,638  3,579  —  —  7,217  Other —  13,896  232  —  14,128  Total debt and equity instruments 180,417  136,765  2,685  —  319,867  Derivative receivables: Interest rate 721  311,173  1,400  (285,873) 27,421  Credit —  14,252  624  (14,175) 701  Foreign exchange 117  137,938  432  (129,482) 9,005  Equity —  43,642  2,085  (39,250) 6,477  Commodity —  17,058  184  (11,080) 6,162  Total derivative receivables 838  524,063  4,725  (479,860) 49,766  Total trading assets 181,255  660,828  7,410  (479,860) 369,633  Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies —  110,117  —  —  110,117  Residential – nonagency —  12,989  1  —  12,990  Commercial – nonagency —  5,188  —  —  5,188  Total mortgage-backed securities —  128,294  1  —  128,295  U.S. Treasury and government agencies 139,436  —  —  —  139,436  Obligations of U.S. states and municipalities —  29,810  —  —  29,810  Certificates of deposit —  77  —  —  77  Non-U.S. government debt securities 12,966  8,821  —  —  21,787  Corporate debt securities —  845  —  —  845  Asset-backed securities: —  —  —  Collateralized loan obligations —  24,991  —  —  24,991  Other —  5,458  —  —  5,458  Total available-for-sale securities 152,402  198,296  1  —  350,699  Loans —  44,439  516  —  44,955  Mortgage servicing rights —  —  4,699  —  4,699  Other assets 7,305  3,824  917  —  12,046  Total assets measured at fair value on a recurring basis $ 340,962 $ 928,185  $ 13,543  $ (479,860) $ 802,830  Deposits $ — $ 25,229  $ 3,360  $ —  $ 28,589  Federal funds purchased and securities loaned or sold under repurchase agreements —  549  —  —  549  Short-term borrowings —  4,246  1,674  —  5,920  Trading liabilities: Debt and equity instruments 59,047  16,481  41  —  75,569  Derivative payables: Interest rate 795  276,746  1,732  (270,670) 8,603  Credit —  14,358  763  (13,469) 1,652  Foreign exchange 109  143,960  1,039  (131,950) 13,158  Equity —  47,261  5,480  (40,204) 12,537  Commodity —  19,685  200  (12,127) 7,758  Total derivative payables 904  502,010  9,214  (468,420) 43,708  Total trading liabilities 59,951  518,491  9,255  (468,420) 119,277  Accounts payable and other liabilities 3,231  452  45  —  3,728  Beneficial interests issued by consolidated VIEs —  36  —  —  36  Long-term debt —  52,406  23,339  —  75,745  Total liabilities measured at fair value on a recurring basis $ 63,182 $ 601,409  $ 37,673  $ (468,420) $ 233,844  (g) (a) (a) (b) (c) (d) (e) (a) (b)(f) (b)(e) (d) (a) At December 31, 2020 and 2019, included total U.S. GSE obligations of $117.6 billion and $104.5 billion, respectively, which were mortgage-related. (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (c) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 5 for a further JPMorgan Chase & Co./2020 Form 10-K 177