Offsetting Assets and Liabilities

The following tables present information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) and may potentially be offset on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016:

Offsetting of Financial Assets and Derivative Assets



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets					Net Amount
(In Thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments			Cash Collateral Received		Net Amount
March 31, 2017
Swaps, at fair value	$	119	$	—	$	119	$	(119	)	$	—	$	—
Total	$	119	$	—	$	119	$	(119	)	$	—	$	—

December 31, 2016
Swaps, at fair value	$	233	$	—	$	233	$	(233	)	$	—	$	—
Total	$	233	$	—	$	233	$	(233	)	$	—	$	—

Offsetting of Financial Liabilities and Derivative Liabilities



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets						Net Amount
(In Thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments (1)			Cash Collateral Pledged (1)			Net Amount
March 31, 2017
Swaps, at fair value (2)	$	—	$	—	$	—	$	—		$	—		$	—
Repurchase agreements and other advances (3)(4)	8,137,543		—		8,137,543		(8,131,319		)	(6,224		)	—
Total	$	8,137,543	$	—	$	8,137,543	$	(8,131,319	)	$	(6,224	)	$	—

December 31, 2016
Swaps, at fair value (2)	$	46,954	$	—	$	46,954	$	—		$	(46,954	)	$	—
Repurchase agreements and other advances (3)(4)	8,687,478		—		8,687,478		(8,682,864		)	(4,614		)	—
Total	$	8,734,432	$	—	$	8,734,432	$	(8,682,864	)	$	(51,568	)	$	—

(1) Amounts disclosed in the Financial Instruments column of the table above represent collateral pledged that is available to be offset against liability balances associated with repurchase agreements and other advances, and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represent amounts pledged as collateral against derivative transactions and repurchase agreements, and exclude excess collateral of $4.8 million and $6.9 million at March 31, 2017 and December 31, 2016, respectively.

(2) The fair value of securities pledged against the Company’s Swaps was $31.1 million and $32.5 million at March 31, 2017 and December 31, 2016, respectively. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap.

(3) The fair value of financial instruments pledged against the Company’s repurchase agreements and other advances was $9.9 billion and $10.5 billion at March 31, 2017 and December 31, 2016, respectively.

(4) Excludes $441,000 and $210,000 of unamortized debt issuance costs at March 31, 2017 and December 31, 2016, respectively.

Nature of Setoff Rights

In the Company’s consolidated balance sheets, all balances associated with the repurchase agreement and Swap transactions that are not centrally cleared are presented on a gross basis.

Certain of the Company’s repurchase agreement and derivative transactions are governed by underlying agreements that generally provide for a right of setoff in the event of default or in the event of a bankruptcy of either party to the transaction. For one repurchase agreement counterparty, the underlying agreements provide for an unconditional right of setoff.