You are comparing the valuation of derivative instruments of two investment banks, Morgan Stanley and Citigroup Inc., for the fiscal year 2023.

Requirements:

1. Morgan Stanley reported derivative instruments valued at $30 billion as of December 31, 2023. Citigroup's derivative instruments valuation for the same date amounted to $25 billion.
2. Analyze and compare the types and purposes of derivative instruments held by Morgan Stanley and Citigroup.
3. Discuss the potential risks and benefits associated with derivative instruments and their impact on the financial performance of both investment banks.