content_image/139158.jpg
## Consolidated Cash and Financial Assets 

Consolidated cash and financial assets reflects the full consolidation of wholly owned and partially owned entities and includes financial assets which are held throughout our operations and include both publicly traded investments as well as investments in private entities. Common shares and loans receivable / deposits include investments that are allocated to certain of our business operating segments. For example, BPY’s 22% common share investment in Canary Wharf Group $1.0 billion is included within consolidated financial assets, and loans receivable / deposits includes loans issued by our private equity and real estate finance operations. 

## Corporate Cash and Financial Assets 

We maintain a corporate portfolio of financial assets with the objective of generating favourable investment returns and providing additional liquidity. 

Government and corporate bonds include short duration securities for liquidity purposes and longer dated securities that match $119 million of insurance liabilities that are included in net working capital within our corporate segment. 

In addition to the carrying values of financial assets, we hold credit default swaps with a notional value of $800 million. The carrying value of these derivative instruments reflected in our financial statements at December 31, 2013 was a liability of $12 million. 

## Corporate Borrowings 

Corporate borrowings at December 31, 2013 included $662 million (2012 – $744 million) of commercial paper and bank borrowings pursuant to, or backed by, $2.2 billion of committed revolving term credit facilities of which $1.9 billion have a five-year term and the remaining $300 million have a four-year term. As at December 31, 2013, approximately $170 million (December 31, 2012 – $253 million) of the facilities were utilized for letters of credit issued to support various business initiatives. 

Term debt of $3.3 billion (2012 – $2.8 billion) consists of public bonds and private placements, all of which are fixed rate and have maturities ranging from 2016 until 2035. These financings provide an important source of long-term capital and an appropriate match to our long-term asset profile. 

Our corporate borrowings have an average term of eight years (December 31, 2012 – eight years). The average interest rate on our corporate borrowings was 4.5% at December 31, 2013 (December 31, 2012 – 4.7%). 

In January 2014, we issued C$500 million of 12 year 4.82% notes and used the proceeds to repay commercial paper borrowings. 

## Property-Specific Borrowings 

As part of our financing strategy, the majority of our debt capital is in the form of property-specific mortgages, denominated in local currencies that have recourse only to the assets being financed and have no recourse to the Corporation. 

<img src='content_image/139158.jpg'>

Property-specific borrowings increased during 2013 due to debt issued or assumed through acquisitions in our property and renewable energy operations. We completed a number of refinancings within our infrastructure business that extended the average term from six years to 10 years. The decrease in infrastructure borrowings is due primarily to the sale of North American timberlands. 

