CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011		Jun. 30, 2010
Cash flows from operating activities:
Net income (loss)	$ 120,817	$ (218,229)	$ 820,712		$ 62,836
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of Investment premiums and discounts, net	126,501	137,177	301,244		301,184
Amortization of intangibles	469	406	835		813
Amortization of deferred expenses	900	900	1,800		1,350
(Gains) losses on sales of Mortgage-Backed Securities and Agency debentures	(7,336)	(39,041)	(34,521)		(86,003)
Stock option and long-term compensation expense	1,197	1,195	2,459		2,366
Unrealized (gains) losses on interest rate swaps	466,943	593,038	297,635		709,770
Unrealized (gains) losses on interest-only Mortgage-Backed Securities	(276)		(276)
Net (gains) losses on trading securities	5,712	(77)	(13,100)		(77)
Gain on investment with affiliate, equity method		(75)	(98)		(215)
Proceeds from repurchase agreements from Broker Dealer	260,778,820	321,240,241	563,508,986		571,380,890
Payments on repurchase agreements from Broker Dealer	(264,821,370)	(317,501,255)	(562,783,026)		(566,328,315)
Proceeds from reverse repurchase agreements to Broker Dealer	48,545,230	6,235,790	104,692,314		8,963,059
Payments on reverse repurchase agreements to Broker Dealer	(47,785,998)	(6,012,400)	(104,274,988)		(8,777,082)
Proceeds from reverse repurchase agreements to Shannon	7,045		7,045
Payments on reverse repurchase agreements to Shannon	(12,073)		(12,073)
Proceeds from securities borrowed	1,459,729	635,782	2,452,768		1,112,091
Payments on securities borrowed	(1,610,944)	(817,892)	(2,756,021)		(1,325,256)
Proceeds from securities loaned	1,328,957	810,273	2,504,167		1,369,825
Payments on securities loaned	(1,241,479)	(628,408)	(2,274,678)		(1,156,640)
Payments on U.S. Treasury Securities	(4,691,219)	(436,433)	(12,889,942)		(436,433)
Proceeds from U.S. Treasury Securities	4,674,592	376,600	12,797,913		376,600
Net payments on derivatives	(1,803)	(1,018)	(2,774)		(1,018)
Net change in:
Other assets	64,740	22,084	685		(11,831)
Accrued interest and dividend receivable	8,027	(3,777)	(40,644)		(2,031)
Advisory and service fees receivable	(3,035)	(1,645)	(3,494)		(794)
Interest payable	9,652	11,020	6,987		9,905
Accounts payable and other liabilities	(192)	(36,475)	69,974		23,811
Net cash provided by (used in) operating activities	(2,576,394)	4,367,781	2,379,889		6,188,805
Cash flows from investing activities:
Payments on purchases of Mortgage-Backed Securities and agency debentures	(5,632,236)	(17,120,818)	(32,289,712)		(26,116,401)
Proceeds from sales of Mortgage-Backed Securities and agency debentures	2,035,385	2,257,455	5,433,231		4,231,735
Principal payments on Mortgage-Backed Securities	3,804,919	10,547,250	9,354,570		16,738,045
Proceeds from Agency debentures called	23,352	874,000	617,598		874,000
Payments on purchase of corporate debt	(7,425)		(7,425)
Net gains (losses) on other derivative securities	(3,480)		11,518
Principal payments on corporate debt	687		1,155
Purchase of investment in affiliate	(57,500)		(57,500)
Purchase of customer relationships	(3,555)		(3,555)
Payments on reverse repurchase agreements					(4,032,426)
Proceeds from reverse repurchase agreements					4,291,430
Net cash provided by (used in) investing activities	160,147	(3,442,113)	(16,940,120)		(4,013,617)
Cash flows from financing activities:
Proceeds from repurchase agreements	62,388,848	53,484,381	127,836,494		111,006,473
Principal payments on repurchase agreements	(59,883,047)	(54,621,012)	(115,648,826)		(114,270,342)
Issuance of Convertible Senior Notes					582,000
Proceeds from exercise of stock options	3,675	753	6,112		1,811
Net proceeds from follow-on offerings			2,941,411
Proceeds from direct purchases and dividend reinvestments	454,564	640	455,706		116,158
Dividends paid	(502,961)	(368,406)	(911,448)		(787,877)
Net cash provided by (used in) financing activities	2,461,079	(1,503,644)	14,679,449		(3,351,777)
Net increase (decrease) in cash and cash equivalents	44,832	(577,976)	119,218		(1,176,589)
Cash and cash equivalents, beginning of period	357,012	905,955	282,626	[1]	1,504,568
Cash and cash equivalents, end of period	401,844	327,979	401,844		327,979
Interest paid	320,428	269,222	644,697		546,846
Taxes paid	3,275	6,985	25,676		16,608
Noncash investing activities:
Receivable for Investments sold	40,751	78,581	40,751		78,581
Payable for Investments purchased	4,824,618	4,867,945	4,824,618		4,867,945
Net change in unrealized loss on available-for-sale securities and interest rate swaps, net of reclassification adjustment	1,040,303	652,349	885,189		648,884
Noncash financing activities:
Dividends declared, not yet paid	539,970	380,636	539,970		380,636
Conversion of Series B cumulative preferred stock	$ 24		$ 73		$ 16

[1] Derived from the audited consolidated financial statements at December 31, 2010.