Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of financial instruments carried at fair value by valuation hierarchy

The following table presents the Company’s financial instruments carried at fair value as of December 31, 2013, on the consolidated balance sheet by the valuation hierarchy, as previously described:

Fair Value at December 31, 2013

(In Thousands)	Level 1		Level 2		Level 3		Total
Assets:
Agency MBS	$	—	$	6,519,221	$	—	$	6,519,221
Non-Agency MBS, including MBS transferred to consolidated VIEs	—		4,852,137		—		4,852,137
Securities obtained and pledged as collateral	383,743		—		—		383,743
Linked Transactions	—		28,181		—		28,181
Derivative hedging instruments	—		13,000		—		13,000
Total assets carried at fair value	$	383,743	$	11,412,539	$	—	$	11,796,282
Liabilities:
Derivative hedging instruments	$	—	$	28,217	$	—	$	28,217
Obligation to return securities obtained as collateral	383,743		—		—		383,743
Total liabilities carried at fair value	$	383,743	$	28,217	$	—	$	411,960

Schedule of carrying value and fair value of financial instruments

The following table presents the carrying value and estimated fair value of the Company’s financial instruments, at December 31, 2013 and December 31, 2012:

	December 31, 2013				December 31, 2012
(In Thousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Agency MBS	$	6,519,221	$	6,519,221	$	7,225,460	$	7,225,460
Non-Agency MBS, including MBS transferred to consolidated VIEs	4,852,137		4,852,137		5,382,165		5,382,165
Securities obtained and pledged as collateral	383,743		383,743		408,833		408,833
Cash and cash equivalents	565,370		565,370		401,293		401,293
Restricted cash	37,520		37,520		5,016		5,016
Linked Transactions	28,181		28,181		12,704		12,704
Derivative hedging instruments	13,000		13,000		203		203
Financial Liabilities:
Repurchase agreements	8,339,297		8,339,071		8,752,472		8,754,521
Securitized debt	366,205		366,767		646,816		647,070
Obligation to return securities obtained as collateral	383,743		383,743		508,827		508,827
Senior Notes	100,000		98,000		100,000		103,040
Derivative hedging instruments	28,217		28,217		63,034		63,034