Annual report 2009 - Dexia.com

Notes to the consolidated fi nancial statements7.5.2. FINANCIAL ASSETS DESIGNATED AT FAIR VALUEA. ANALYSIS BY COUNTERPARTY31/12/08 31/102/09Public sector 190 209Banks 512 29Other 4,506 3,477TOTAL 5,208 3,715of which included in cash and cash equivalents 4 2B. ANALYSIS BY NATURE31/12/08 31/12/09Loans 67 49Bonds issued by public bodies 184 46Other bonds and fixed-income instruments 396 394Equity and variable-income instruments 39 31Unit linked products Insurance 4,522 3,194TOTAL 5,208 3,715C. TREASURY BILLS AND OTHER ELIGIBLE BILLS FOR REFINANCING TO THE CENTRAL BANKS31/12/08 31/12/09Treasury bills and other eligible bills for refinancing to the central banks 30 0D. SECURITIES PLEDGED UNDER REPURCHASE AGREEMENTS WITH OTHER BANKS31/12/08Market value31/12/09Market valueIncluded in other bonds and fixed-income instruments 1 0Management reportConsolidatedfinancial statementsE. ANALYSIS BY MATURITY AND INTEREST RATESee notes 12.4., 12.5. and 12.6.F. ANALYSIS OF THE FAIR VALUESee note 12.1.The Fair Value Option (FVO) for financial assets is mainly usedin the following situations:1) by the insurance business where liabilities contain a notcloselyrelated embedded derivative whereby the return islinked to the investment in a specific pool of insurer’s assets(unit-linked products);2) the FVO is used as an alternative method in order toreduce volatility in profit or loss when, at inception, thereis a risk that the hedge accounting requirements will not bemet.To determine the fair value for the non-listed financial instrumentsclassified under the fair value option, the pricing toolsused and procedures followed are determined by Group RiskManagement.The pricing tool is a discounted cash flow model wherebythe net present value is determined by an interest rate basedon available market rates applicable for similar assets and forissuers with a similar credit rating.Annual financial statementsAdditional informationAnnual report 2009 Dexia 139