Investments | 3. Investments Available-for-sale held-to-maturity The amortized cost, net of allowance for credit losses, gross unrealized gains and losses, and fair value of available-for-sale held-to-maturity Amortized (4)(5) Gross gains Gross losses Fair value (in millions of yen) 2022 Available-for-sale Debt securities: Japanese government bonds 25,191,315 5,794 38,379 25,158,730 Japanese local government bonds 421,557 254 2,165 419,646 U.S. Treasury bonds and federal agency securities 381,653 — 8,444 373,209 Other foreign government bonds 1,338,295 220 2,578 1,335,937 Agency mortgage-backed securities (1) 452,830 1,695 3,985 450,540 Residential mortgage-backed securities 58,246 194 312 58,128 Commercial mortgage-backed securities 848,568 5,437 214 853,791 Japanese corporate bonds and other debt securities 2,222,670 14,212 1,705 2,235,177 Foreign corporate bonds and other debt securities (2) 787,263 2,490 1,021 788,732 Total 31,702,397 30,296 58,803 31,673,890 Held-to-maturity Debt securities: Japanese government bonds 479,980 5,101 — 485,081 Agency mortgage-backed securities (3) 1,039,075 24 58,604 980,495 Total 1,519,055 5,125 58,604 1,465,576 Amortized (4)(5) Gross gains Gross losses Fair value (in millions of yen) 2023 Available-for-sale Debt securities: Japanese government bonds 16,483,722 3,067 37,496 16,449,293 Japanese local government bonds 560,093 198 5,628 554,663 U.S. Treasury bonds and federal agency securities 382,990 — 7,289 375,701 Other foreign government bonds 1,309,473 661 2,261 1,307,873 Agency mortgage-backed securities (1) 532,364 1,140 11,307 522,197 Residential mortgage-backed securities 48,257 71 866 47,462 Commercial mortgage-backed securities 856,708 5,157 451 861,414 Japanese corporate bonds and other debt securities 2,100,733 13,024 4,538 2,109,219 Foreign corporate bonds and other debt securities (2) 1,005,209 2,319 1,581 1,005,947 Total 23,279,549 25,637 71,417 23,233,769 Held-to-maturity Debt securities: Japanese government bonds 799,305 2,171 1,028 800,448 Agency mortgage-backed securities (3) 1,250,802 403 136,545 1,114,660 Total 2,050,107 2,574 137,573 1,915,108 Notes: (1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥450,507 million and ¥33 million, respectively, at March 31, 2022, and ¥522,166 million and ¥31 million, respectively, at March 31, 2023. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government. (2) Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and asset-backed securities (“ABS”), of which the total fair values were ¥247,762 million at March 31, 2022, and ¥330,365 million at March 31, 2023. (3) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities. (4) Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale million at March 31, 2022, and ¥nil at March 31, 2023. (5) Accrued interest receivables are excluded from amortized cost, of which the amount were ¥4,702 million at March 31, 2022, and ¥5,637 million at March 31, 2023 and included in Accrued income. Contractual maturities The amortized cost, net of allowance for credit losses, and fair value of available-for-sale held-to-maturity Amortized cost Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total (in millions of yen) Available-for-sale Debt securities: Japanese government bonds 14,280,736 783,953 1,317,250 101,783 16,483,722 Japanese local government bonds 35,545 275,695 241,350 7,503 560,093 U.S. Treasury bonds and federal agency securities 382,990 — — — 382,990 Other foreign government bonds 1,027,119 279,985 1,186 1,183 1,309,473 Agency mortgage-backed securities — — 1,118 531,246 532,364 Residential mortgage-backed securities — — — 48,257 48,257 Commercial mortgage-backed securities 1,986 538,136 315,886 700 856,708 Japanese corporate bonds and other debt securities 412,207 1,155,415 240,446 292,665 2,100,733 Foreign corporate bonds and other debt securities 552,628 279,007 154,678 18,896 1,005,209 Total 16,693,211 3,312,191 2,271,914 1,002,233 23,279,549 Held-to-maturity Debt securities: Japanese government bonds 279,982 189,984 329,339 — 799,305 Agency mortgage-backed securities — — — 1,250,802 1,250,802 Total 279,982 189,984 329,339 1,250,802 2,050,107 Fair value Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total (in millions of yen) Available-for-sale Debt securities: Japanese government bonds 14,282,254 782,278 1,290,250 94,511 16,449,293 Japanese local government bonds 35,551 275,371 236,653 7,088 554,663 U.S. Treasury bonds and federal agency securities 375,701 — — — 375,701 Other foreign government bonds 1,026,121 279,384 1,186 1,182 1,307,873 Agency mortgage-backed securities — — 1,113 521,084 522,197 Residential mortgage-backed securities — — — 47,462 47,462 Commercial mortgage-backed securities 1,989 540,069 318,645 711 861,414 Japanese corporate bonds and other debt securities 412,157 1,154,386 238,775 303,901 2,109,219 Foreign corporate bonds and other debt securities 552,946 278,975 154,033 19,993 1,005,947 Total 16,686,719 3,310,463 2,240,655 995,932 23,233,769 Held-to-maturity Debt securities: Japanese government bonds 280,980 190,917 328,551 — 800,448 Agency mortgage-backed securities — — — 1,114,660 1,114,660 Total 280,980 190,917 328,551 1,114,660 1,915,108 Credit losses The MHFG Group recognized no material allowance for credit loss on available-for-sale available-for-sale available-for-sale held-to-maturity held-to-maturity and summary of significant accounting policies Continuous unrealized loss position The following table shows the gross unrealized losses, net of allowance for credit losses, and fair value of available-for-sale Less than 12 months 12 months or more Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (in millions of yen) 2022 Available-for-sale Debt securities: Japanese government bonds 19,407,878 11,377 1,565,950 27,002 20,973,828 38,379 Japanese local government bonds 229,562 1,277 136,733 888 366,295 2,165 U.S. Treasury bonds and federal agency securities 321,073 7,209 41,555 1,235 362,628 8,444 Other foreign government bonds 729,134 2,178 71,647 400 800,781 2,578 Agency mortgage-backed securities (Note) 183,150 2,326 78,717 1,659 261,867 3,985 Residential mortgage-backed securities 9,221 11 17,193 301 26,414 312 Commercial mortgage-backed securities 58,815 185 13,939 29 72,754 214 Japanese corporate bonds and other debt securities 605,067 1,516 53,020 189 658,087 1,705 Foreign corporate bonds and other debt securities 302,569 692 53,338 329 355,907 1,021 Total 21,846,469 26,771 2,032,092 32,032 23,878,561 58,803 2023 Available-for-sale Debt securities: Japanese government bonds 3,706,134 11,369 1,419,222 26,127 5,125,356 37,496 Japanese local government bonds 146,484 1,596 322,224 4,032 468,708 5,628 U.S. Treasury bonds and federal agency securities 65,288 765 293,149 6,524 358,437 7,289 Other foreign government bonds 475,493 674 250,130 1,587 725,623 2,261 Agency mortgage-backed securities (Note) 142,776 2,361 238,858 8,946 381,634 11,307 Residential mortgage-backed securities 16,230 265 22,017 601 38,247 866 Commercial mortgage-backed securities 105,346 304 43,653 147 148,999 451 Japanese corporate bonds and other debt securities 1,177,725 3,775 635,289 763 1,813,014 4,538 Foreign corporate bonds and other debt securities 434,339 1,279 68,959 302 503,298 1,581 Total 6,269,815 22,388 3,293,501 49,029 9,563,316 71,417 Note: Agency mortgage-backed securities presented in this line consist of Japanese agency mortgage-backed securities, of which the fair values were ¥261,867 million at March 31, 2022, and ¥381,634 million at March 31, 2023. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. At March 31, 2023, the MHFG Group did not intend to sell the debt securities in an unrealized loss position and it was not more likely than not that the Group would be required to sell them before the recovery of their amortized cost bases. For Japanese government bonds, U.S. Treasury bonds and federal agency securities and Agency mortgage-backed securities, their entire amortized cost bases are expected to be recovered since the unrealized losses had not resulted from credit deterioration, but primarily from changes in interest rates. For the debt securities other than those described above, except for the securities for which credit losses have been recognized in income, the Group determined that their entire amortized cost bases are expected to be recovered, after considering various factors such as the extent to which their fair values were below their amortized cost bases, the external and/or internal ratings and the present values of cash flows expected to be collected. Based on the aforementioned evaluation, except for the securities for which credit losses have been recognized in income, the Group determined that the debt securities in an unrealized loss position were not considered credit losses. Realized gains and losses The following table shows the realized gains and losses on sales of available-for-sale 2021 2022 2023 (in millions of yen) Gross realized gains 3,309 12,540 22,962 Gross realized losses (24,407 ) (40,077 ) (23,593 ) Net realized gains (losses) on sales of available-for-sale (21,098 ) (27,537 ) (631 ) Equity securities Equity securities include securities which have readily determinable fair values, securities which qualify for the practical expedient to estimate fair value using the net asset value per share (or its equivalent), and securities which are without readily determinable fair values. Equity securities which have readily determinable fair values mainly consist of common stock of Japanese listed companies. Equity securities which are measured based on the net asset value per share (or its equivalent) consist of private equity and real estate funds. Equity securities without readily determinable fair values include non-marketable Net gains and losses The following table shows the details of the net gains and losses on Equity securities for the fiscal years ended March 31, 2021, 2022 and 2023: 2021 2022 2023 (in millions of yen) Net gains (losses) recognized during the period on equity securities 850,567 (60,563 ) 135,601 Less: Net gains (losses) recognized during the period on equity securities sold during the period 82,969 17,000 29,561 Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting 767,598 (77,563 ) 106,040 Equity securities without readily determinable fair values The following table shows carrying amounts of equity securities without readily determinable fair values, for which the measurement alternative is used, and cumulative amounts due to downward adjustments and impairments and upward adjustments, at March 31, 2021, 2022 and 2023: 2021 2022 2023 (in millions of yen) Carrying amounts at the end of the period 186,146 207,407 207,743 Downward adjustments and impairments 5,087 6,519 5,345 Upward adjustments 9,216 11,623 13,015 The following table shows amounts recognized in earnings during the period due to downward adjustments and impairments and upward adjustments for equity securities without readily determinable fair values. 2021 2022 2023 (in millions of yen) Downward adjustments and impairments 3,084 2,626 1,291 Upward adjustments 404 2,459 1,459 The MHFG Group elected to measure all equity securities without readily determinable fair values, which do not qualify for the practical expedient to estimate fair value, using the measurement alternative, which is made on an instrument-by-instrument Other investments The following table summarizes the composition of Other investments at March 31, 2022 and 2023: 2022 2023 (in millions of yen) Equity method investments 519,552 598,772 Investments held by consolidated investment companies and other 62,836 68,429 Total 582,388 667,201 Equity method investments Investments in investees over which the MHFG Group has the ability to exert significant influence are accounted for using the equity method of accounting. Such investments included marketable equity securities with carrying values of ¥255,336 million and ¥268,736 million, at March 31, 2022 and 2023, respectively. The aggregate market values of these marketable equity securities were ¥456,195 million and ¥503,171 million, respectively. The majority of aggregate market values of these marketable equity securities as of March 31, 2023 as of March 31, 2023 non-marketable , and Rakuten Securities, Inc. , 27.00% Investments held by consolidated investment companies The MHFG Group consolidates certain investment companies over which it has control through either ownership or other means. Investment companies are subject to specialized industry accounting which requires investments to be carried at fair value, with changes in fair value recorded in earnings. The MHFG Group maintains this specialized industry accounting for investments held by consolidated investment companies, which consist of marketable and non-marketable |