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GE 2009 ANNUAL REPORT 75
    
Note 3.
Investment Securities
The vast majority of our investment securities are classified as available-for-sale and comprise mainly investment-grade debt
securities supporting obligations to annuitants and policyholders in our run-off insurance operations and holders of guaranteed
investment contracts, and retained interests in securitization entities.
2009 2008
December 31 (In millions)
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
GE
Debt — U.S. corporate $ 12 $ 4 $ (1) $ 15 $ 182 $ — $ — $ 182
Equity — available-for-sale 14 1 — 15 32 — (1) 31
26 5 (1) 30 214 — (1) 213
GECS
Debt
U.S. corporate 23,410 981 (756) 23,635 22,183 512 (2,477) 20,218
State and municipal 2,006 34 (246) 1,794 1,556 19 (94) 1,481
Residential mortgage-backed (a) 4,005 79 (766) 3,318 5,326 70 (1,052) 4,344
Commercial mortgage-backed 3,053 89 (440) 2,702 2,910 14 (788) 2,136
Asset-backed 2,994 48 (305) 2,737 3,173 3 (691) 2,485
Corporate — non-U.S. 1,831 59 (50) 1,840 1,441 14 (166) 1,289
Government — non-U.S. 2,902 63 (29) 2,936 1,300 61 (19) 1,342
U.S. government and federal agency 2,628 46 — 2,674 739 65 (100) 704
Retained interests (b) 8,479 392 (40) 8,831 6,395 113 (152) 6,356
Equity
Available-for-sale 489 242 (5) 726 629 24 (160) 493
Trading 720 — — 720 388 — — 388
52,517 2,033 (2,637) 51,913 46,040 895 (5,699) 41,236
ELIMINATIONS (2) — — (2) (7) — 4 (3)
Total $52,541 $ 2,038 $ (2,638) $51,941 $46,247 $ 895 $ (5,696) $41,446
(a) Substantially collateralized by U.S. mortgages.
(b) Included $1,918 million and $1,752 million of retained interests at December 31, 2009 and 2008, respectively, accounted for at fair value in accordance with ASC 815,
Derivatives and Hedging. See Note 23.
The fair value of investment securities increased to $51.9 billion at December 31, 2009, from $41.4 billion at December 31, 2008,
primarily driven by decreases in unrealized losses due to market improvements, investment of cash into short-term investments
such as money market funds and certificates of deposits, and an increase in our retained interests in securitization entities.