SECURED FINANCING

9 Months Ended

Sep. 30, 2014

8. SECURED FINANCING

The Company had outstanding $69.6 billion and $61.8 billion of repurchase agreements with weighted average borrowing rates of 1.61% and 2.33%, after giving effect to the Company’s interest rate swaps, and weighted average remaining maturities of 159 days and 204 days as of September 30, 2014 and December 31, 2013, respectively.

At September 30, 2014 and December 31, 2013, the repurchase agreements had the following remaining maturities and weighted average rates:

	September 30, 2014					December 31, 2013
	Repurchase Agreements		Weighted Average Rate			Repurchase Agreements		Weighted Average Rate
	(dollars in thousands)
1 day	$	2,609,132		0.15	%	$	-		0.00	%
2 to 29 days		18,032,715		0.30	%		21,171,574		0.36	%
30 to 59 days		14,241,967		0.37	%		13,373,921		0.43	%
60 to 89 days		2,871,206		0.38	%		3,592,266		0.44	%
90 to 119 days		10,548,578		0.37	%		4,010,334		0.52	%
Over 120 days(1)		21,307,124		1.14	%		19,632,906		1.29	%
Total	$	69,610,722		0.58	%	$	61,781,001		0.68	%

(1)	Approximately 12% and 16% of the total repurchase agreements had a remaining maturity over 1 year as of September 30, 2014 and December 31, 2013, respectively.

Repurchase agreements and reverse repurchase agreements with the same counterparty and the same maturity are presented net in the Consolidated Statements of Financial Condition when the terms of the agreements permit netting. The following table summarizes the gross amounts of reverse repurchase agreements and repurchase agreements, amounts offset in accordance with netting arrangements and net amounts of repurchase agreements and reverse repurchase agreements as presented in the Consolidated Statements of Financial Condition as of September 30, 2014 and December 31, 2013.

	September 30, 2014						December 31, 2013
	Reverse Repurchase Agreements			Repurchase Agreements			Reverse Repurchase Agreements			Repurchase Agreements
	(dollars in thousands)
Gross Amounts	$	250,000		$	69,860,722		$	2,524,980		$	64,205,981
Amounts Offset		(250,000	)		(250,000	)		(2,424,980	)		(2,424,980	)
Netted Amounts	$	-		$	69,610,722		$	100,000		$	61,781,001

Investment Securities pledged as collateral under these secured financings and interest rate swaps had an estimated fair value and accrued interest of $73.3 billion and $230.1 million, respectively, at September 30, 2014 and $67.9 billion and $222.1 million, respectively, at December 31, 2013.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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