FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the estimated fair values of financial instruments measured at fair value on a recurring basis.

	Level 1		Level 2		Level 3		Total
At December 31, 2013	(dollars in thousands)
Assets:
U.S. Treasury securities	$	1,117,915	$	-	$	-	$	1,117,915
Agency mortgage-backed securities		-		70,388,949		-		70,388,949
Agency debentures		-		2,969,885		-		2,969,885
Investment in affiliates		139,447		-		-		139,447
Interest rate swaps		-		559,044		-		559,044
Other derivatives		3,487		143,238		-		146,725
Total Assets	$	1,260,849	$	74,061,116	$	-	$	75,321,965
Liabilities:
U.S. Treasury securities sold, not yet purchased		1,918,394		-		-		1,918,394
Interest rate swaps		-		1,141,828		-		1,141,828
Other derivatives		439		55,079		-		55,518
Total Liabilities	$	1,918,833	$	1,196,907	$	-	$	3,115,740
	Level 1		Level 2		Level 3		Total
At December 31, 2012	(dollars in thousands)
Assets:
U.S. Treasury securities	$	752,076	$	-	$	-	$	752,076
Agency mortgage-backed securities		-		123,963,207		-		123,963,207
Agency debentures		-		3,009,568		-		3,009,568
Investment in affiliates		234,120		-		-		234,120
Other derivatives		7,955		1,875		-		9,830
Total Assets	$	994,151	$	126,974,650	$	-	$	127,968,801
Liabilities:
U.S. Treasury securities sold, not yet purchased		495,437		-		-		495,437
Interest rate swaps		-		2,584,907		-		2,584,907
Total Liabilities	$	495,437	$	2,584,907	$	-	$	3,080,344

Schedule of Estimated Fair Value for All Financial Assets and Liabilities

The following table summarizes the estimated fair value for all financial assets and liabilities as of December 31, 2013 and 2012.

		December 31, 2013				December 31, 2012
	Level in Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
		(dollars in thousands)
Financial assets:
Cash and cash equivalents	1	$	552,436	$	552,436	$	615,789	$	615,789
Reverse repurchase agreements	1		100,000		100,000		1,811,095		1,811,095
Securities borrowed	1		2,582,893		2,582,893		2,160,942		2,160,942
U.S. Treasury securities	1		1,117,915		1,117,915		752,076		752,076
Agency mortgage-backed securities	2		70,388,949		70,388,949		123,963,207		123,963,207
Agency debentures	2		2,969,885		2,969,885		3,009,568		3,009,568
Investment in affiliates	1		139,447		139,447		234,120		234,120
Commercial real estate debt and preferred equity	3		1,583,969		1,581,836		-		-
Corporate debt	2		117,687		118,362		63,944		64,271
Interest rate swaps	2		559,044		559,044		-		-
Other derivatives	1,2		146,725		146,725		9,830		9,830
Financial liabilities:
U.S. Treasury securities sold, not yet  purchased	1	$	1,918,394	$	1,918,394	$	495,437	$	495,437
Repurchase agreements	1,2		61,781,001		62,134,133		102,785,697		103,332,832
Securities loaned	1		2,527,668		2,527,668		1,808,315		1,808,315
Convertible Senior Notes	1		825,262		870,199		825,541		899,192
Mortgages payable	2		19,332		19,240		-		-
Participation sold	3		14,065		14,050		-		-
Interest rate swaps	2		1,141,828		1,141,828		2,584,907		2,584,907
Other derivatives	1,2		55,518		55,518		-		-