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Repurchase Agreements
12 Months Ended
Dec. 31, 2011
Disclosure Of Repurchase Agreements [Abstract]  
Repurchase Agreements Resale Agreements Securities Borrowed And Securities Loaned Disclosure [Text Block]

NOTE 6. REPURCHASE AGREEMENTS

 

As of December 31, 2011, Bimini Capital had outstanding repurchase agreement obligations of approximately $69.5 million with a net weighted average borrowing rate of 0.43%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $73.3 million. As of December 31, 2010, Bimini Capital had outstanding repurchase agreement obligations of approximately $113.6 million with a net weighted average borrowing rate of 0.32%. These agreements were collateralized by MBS with a fair value of approximately $117.6 million.

 

As of December 31, 2011 and 2010, Bimini Capital's net repurchase agreements had remaining maturities as summarized below:

(in thousands)          
  OVERNIGHTBETWEEN 2BETWEEN 31 GREATER   
  (1 DAY ORANDAND THAN  
  LESS)30 DAYS90 DAYS 90 DAYS TOTAL
December 31, 2011          
Agency Backed Mortgage-Backed Securities:          
Fair market value of securities pledged, including          
 accrued interest receivable$ -$ 73,305$ -$ -$ 73,305
Repurchase agreement liabilities associated with          
 these securities$ -$ 69,528$ -$ -$ 69,528
Net weighted average borrowing rate -  0.43% -  -  0.43%
December 31, 2010          
Agency Backed Mortgage-Backed Securities:          
Fair market value of securities pledged, including          
 accrued interest receivable$ -$ 75,175$ 42,415$ -$ 117,590
Repurchase agreement liabilities associated with          
 these securities$ -$ 73,014$ 40,578$ -$ 113,592
Net weighted average borrowing rate -  0.31% 0.33% -  0.32%

Summary information regarding the Company's amounts at risk with individual counterparties greater than 10% of the Company's equity at December 31, 2011 and 2010 is as follows:

(in thousands)   
   AmountWeighted Average Maturity of Repurchase
Repurchase Agreement Counterparties at Risk(1)Agreements in Days
December 31, 2011   
 Nomura$ 3,474 27
December 31, 2010   
 MF Global, Inc.$ 3,444 25

  • Equal to the fair value of securities sold, cash posted as collateral and accrued interest receivable, minus the sum of repurchase agreement liabilities and accrued interest payable.

 

On October 31, 2011, MF Global Holding Ltd. (“MF”) filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. As of September 30, 2011, a subsidiary of MF, MF Global, Inc. was the Company's largest repurchase agreement funding provider and the Company had approximately $2.3 million at risk under such agreements. As of December 31, 2011, the Company had no outstanding funding arrangements in place with MF under repurchase agreements. All repurchase agreements in place at September 30, 2011, have been terminated and all pledged assets have been returned. As of March 9, 2012, one reverse-repurchase agreement with MF has yet to be fully unwound and the Company has not received funds which are owed by MF to the Company in the amount of approximately $343,000. At December 31, 2011, the Company has established a reserve of $300,000 against this balance. The Company believes it is entitled to these funds; however, given publicly-disclosed developments at MF and the fact that MF is in bankruptcy, it is not known if or when the funds will be received.