NOTE 4: INVESTMENTS IN SECURITIES

Our investments in securities and security-related receivables are accounted for at fair value. The following table summarizes our investments in securities as of December 31, 2013:


Investment Description	Amortized Cost		Net Fair Value Adjustments			Estimated Fair Value		Weighted Average Coupon (1)			Weighted Average Years to Maturity
Trading securities
TruPS and subordinated debentures	$	620,376	$	(139,531	)	$	480,845		3.7	%		20.4
Other securities		12,312		(12,312	)		0		4.7	%		38.9

Total trading securities		632,688		(151,843	)		480,845		3.8	%		20.8
Available-for-sale securities		3,600		(3,598	)		2		2.0	%		28.9
Security-related receivables
TruPS and subordinated debenture receivables		32,900		(24,689	)		8,211		3.4	%		18.3
Unsecured REIT note receivables		30,000		3,046			33,046		6.7	%		3.1
CMBS receivables (2)		69,905		(25,787	)		44,118		5.6	%		30.6
Other securities		33,144		(32,064	)		1,080		2.2	%		36.5

Total security-related receivables		165,949		(79,494	)		86,455		4.7	%		24.4

Total investments in securities	$	802,237	$	(234,935	)	$	567,302		3.9	%		21.7

(1)	Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments which does not necessarily correspond to the carrying amount.

(2)

CMBS receivables include securities with a fair value totaling $8,228 that are rated between “AAA” and “A-” by Standard & Poor’s, securities with a fair value totaling $26,594 that are rated between “BBB+” and “B-” by Standard & Poor’s, securities with a fair value totaling $8,164 that are rated “CCC” by Standard & Poor’s, and securities with a fair value totaling $1,132 that are rated “D” by Standard & Poor’s.

A substantial portion of our gross unrealized losses at December 31, 2013 were greater than 12 months.

The following table summarizes our investments in securities as of December 31, 2012:


Investment Description	Amortized Cost		Net Fair Value Adjustments			Estimated Fair Value		Weighted Average Coupon (1)			Weighted Average Years to Maturity
Trading securities
TruPS and subordinated debentures	$	637,376	$	(152,173	)	$	485,203		4.2	%		20.9
Other securities		11,584		(11,584	)		0		4.8	%		39.9

Total trading securities		648,960		(163,757	)		485,203		4.2	%		21.2
Available-for-sale securities		3,600		(3,598	)		2		2.1	%		29.9
Security-related receivables
TruPS and subordinated debenture receivables		111,025		(19,877	)		91,148		6.5	%		9.1
Unsecured REIT note receivables		30,000		2,769			32,769		6.7	%		4.1
CMBS receivables (2)		83,342		(39,532	)		43,810		5.6	%		32.2
Other securities		38,508		(35,931	)		2,577		2.8	%		37.4

Total security-related receivables		262,875		(92,571	)		170,304		5.7	%		20.0

Total investments in securities	$	915,435	$	(259,926	)	$	655,509		4.6	%		21.0

(1)	Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments which does not necessarily correspond to the carrying amount.

(2)

CMBS receivables include securities with a fair value totaling $8,398 that are rated between “AAA” and “A-” by Standard & Poor’s, securities with a fair value totaling $26,013 that are rated between “BBB+” and “B-” by Standard & Poor’s, securities with a fair value totaling $8,782 that are rated “CCC” by Standard & Poor’s, and securities with a fair value totaling $617 that are rated “D” by Standard & Poor’s.

A substantial portion of our gross unrealized losses at December 31, 2012 were greater than 12 months.

TruPS included above as trading securities include (a) investments in TruPS issued by VIEs of which we are not the primary beneficiary and which we do not consolidate and (b) transfers of investments in TruPS securities to us that were accounted for as a sale pursuant to FASB ASC Topic 860, “Transfers and Servicing.”

The following table summarizes the non-accrual status of our investments in securities:


	As of December 31, 2013							As of December 31, 2012
	Principal /Par Amount on Non-accrual		Weighted Average Coupon			Fair Value		Principal /Par Amount on Non-accrual		Weighted Average Coupon			Fair Value
TruPS and TruPS receivables	$	83,557		1.8	%	$	5,678	$	83,557		1.9	%	$	5,678
Other securities		41,019		3.1	%		11		35,159		3.2	%		2
CMBS receivables		22,772		5.9	%		447		35,208		5.9	%		642

The assets of our consolidated CDOs collateralize the debt of such entities and are not available to our creditors. As of December 31, 2013 and 2012, investment in securities of $653,276 and $748,401, respectively, in principal amount of TruPS and subordinated debentures, and $91,383 and $101,021, respectively, in principal amount of unsecured REIT note receivables and CMBS receivables, collateralized the consolidated CDO notes payable of such entities.