Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of March 31, 2018 and December 31, 2017, were as follows:



March 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Asset-backed senior securities related to Company-sponsored securitizations ⁽¹⁾	$	45,875	$	54	$	(48	)	$	45,881
Certificates of deposit	20,303		—		—			20,303
Asset-backed subordinated residual certificates related to Company-sponsored securitizations and CLUB Certificate transactions ⁽¹⁾	20,070		125		(66		)	20,129
Corporate debt securities	19,853		2		(15		)	19,840
Asset-backed securities	14,588		—		(2		)	14,586
Commercial paper	7,685		—		—			7,685
Total securities available for sale	$	128,374	$	181	$	(131	)	$	128,424


December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Asset-backed senior securities related to Company-sponsored securitizations ⁽¹⁾	$	36,953	$	73	$	(6	)	$	37,020
Certificates of deposit	24,758		—		—			24,758
Corporate debt securities	16,268		1		(11		)	16,258
Asset-backed securities	14,843		1		(1		)	14,843
Commercial paper	14,665		—		—			14,665
Asset-backed subordinated residual certificates related to Company-sponsored securitizations and CLUB Certificate transactions ⁽¹⁾	10,058		11		(40		)	10,029
Total securities available for sale	$	117,545	$	86	$	(58	)	$	117,573

⁽¹⁾

As of March 31, 2018 and December 31, 2017, approximately $64.2 million and $45.3 million, respectively, of the asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions are subject to restrictions on transfer pursuant to the Company's obligations as a “sponsor” under the U.S. Risk Retention Rules (as more fully described in “Part II. Other Information – Item 1A. Risk Factors – Risk retention rules and recent developments in our business may increase our compliance costs, impair our liquidity and otherwise adversely affect our operating results” in the Company’s Annual Report).

The senior securities and the subordinated residual certificates related to the securitization and CLUB Certificate transactions are accounted for as securities available for sale, as described in “Note 7. Securitizations and Variable Interest Entities.” The senior securities and subordinated residual certificates are included in asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions in the table above. The senior securities are valued using prices obtained from third-party pricing services (Level 2 of the fair value hierarchy), as described in the Company’s Annual Report (“Note 2. Summary of Significant Accounting Policies”). The subordinated residual certificates and CLUB Certificates retained interests are valued using discounted cash flow models that incorporate contractual payment terms and estimated discount rates, credit losses, and prepayment rates (Level 3 of the fair value hierarchy). The fair value of the subordinated residual certificates and retained CLUB Certificates was $20.1 million and $10.0 million at March 31, 2018 and December 31, 2017, respectively.

A summary of securities available for sale with unrealized losses as of March 31, 2018 and December 31, 2017, aggregated by period of continuous unrealized loss, is as follows:



	Less than 12 months					12 months or longer				Total
March 31, 2018	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions	$	42,018	$	(114	)	$	—	$	—	$	42,018	$	(114	)
Corporate debt securities	15,377		(15		)	—		—		15,377		(15		)
Asset-backed securities	1,748		(2		)	—		—		1,748		(2		)
Total securities with unrealized losses ⁽¹⁾	$	59,143	$	(131	)	$	—	$	—	$	59,143	$	(131	)


	Less than 12 months					12 months or longer				Total
December 31, 2017	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions	$	26,534	$	(46	)	$	—	$	—	$	26,534	$	(46	)
Corporate debt securities	14,368		(11		)	—		—		14,368		(11		)
Asset-backed securities	4,401		(1		)	—		—		4,401		(1		)
Total securities with unrealized losses ⁽¹⁾	$	45,303	$	(58	)	$	—	$	—	$	45,303	$	(58	)


⁽¹⁾	The number of investment positions with unrealized losses at March 31, 2018 and December 31, 2017 totaled 30 and 24, respectively.

During the first quarter of 2018, the Company recognized $1.3 million in other-than-temporary impairment charges on its subordinated residual certificates held as a result of its Company-sponsored securitization transactions. There were no credit losses recognized into earnings for other-than-temporarily impaired securities held by the Company during the first quarter of 2018 for which a portion of the impairment was previously recognized in other comprehensive income. During the first quarter of 2017, the Company recognized no other-than-temporary impairment charges.

The contractual maturities of securities available for sale at March 31, 2018, were as follows:



	Within 1 year		After 1 year through 5 years		Total
Certificates of deposit	$	20,303	$	—	$	20,303
Corporate debt securities	19,840		—		19,840
Asset-backed securities	12,086		2,500		14,586
Commercial paper	7,685		—		7,685
Fair value	$	59,914	$	2,500	$	62,414
Asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions					66,010
Total fair value	$	59,914	$	2,500	$	128,424
Total amortized cost	$	59,929	$	2,500	$	128,374

During the first quarter of 2018, the Company and the Company’s Consumer Loan Underlying Bond Depositor LLC (Depositor) sold $440.6 million in asset-backed securities related to Company-sponsored securitizations and CLUB Certificate transactions. There were no realized gains or losses related to such sales. For further information, see “Note 7. Securitizations and Variable Interest Entities.” There were no other sales of securities available for sale during the first quarter of 2018 or 2017.