11. Offsetting of Assets and Liabilities

The Company records financial instruments at fair value as described in Note 3. All financial instruments are recorded on a gross basis on the Condensed Statement of Assets, Liabilities, and Equity. In connection with its derivative, repurchase and reverse repurchase agreements, and the related trading agreements, the Company and its counterparties are required to pledge collateral. Cash or other collateral is exchanged as required with each of the Company's counterparties in connection with open derivative positions, repurchase agreements, and reverse repurchase agreements.

The following tables present information about certain assets and liabilities representing financial instruments as of September 30, 2013 and December 31, 2012. The Company has not entered into master netting agreements with any of its counterparties.

September 30, 2013:



Description	Amount of Assets (Liabilities) Presented in the Consolidated Statements of Assets, Liabilities, and Equity⁽¹⁾			Financial Instruments⁽²⁾⁽³⁾		Cash Collateral (Received) Pledged⁽³⁾		Net Amount
(In thousands)
Assets
Financial Derivative Assets- Gross	$	43,567
Financial Derivative Assets-Net	$	10,110		$	—	$	33,692	$	43,802
Repurchase Agreements	$	40,994
Repurchase Agreements-Net	$	—		$	—	$	—	$	—
Liabilities
Financial Derivative Liabilities- Gross	$	(33,457	)
Financial Derivative Liabilities-Net	$	—		$	—	$	—	$	—
Reverse Repurchase Agreements	$	(1,345,223	)
Reverse Repurchase Agreements- Net	$	(1,304,229	)	$	1,300,616	$	3,613	$	—

December 31, 2012:



Description	Amount of Assets (Liabilities) Presented in the Consolidated Statements of Assets, Liabilities, and Equity⁽¹⁾			Financial Instruments⁽²⁾⁽³⁾		Cash Collateral (Received) Pledged⁽³⁾			Net Amount
(In thousands)
Assets
Financial Derivative Assets- Gross	$	48,504
Financial Derivative Assets-Net	$	33,292		$	—	$	(13,188	)	$	20,104
Repurchase Agreements	$	13,650
Repurchase Agreements-Net	$	—		$	—	$	—		$	—
Liabilities
Financial Derivative Liabilities- Gross	$	(15,212	)
Financial Derivative Liabilities-Net	$	—		$	—	$	—		$	—
Reverse Repurchase Agreements	$	(905,718	)
Reverse Repurchase Agreements- Net	$	(892,068	)	$	887,940	$	4,128		$	—


(1)	In the Company's Consolidated Statement of Assets, Liabilities, and Equity, all balances associated with the repurchase agreements, reverse repurchase agreements, and derivatives transactions are presented on a gross basis.

(2)

Amounts disclosed in the Financial Instruments column of the table represent collateral that is available to be offset against balances associated with repurchase and reverse repurchase agreements. For the purposes of the table above, total financial instruments and cash collateral (received) pledged can not exceed the gross amount of assets and (liabilities) as presented above. Therefore we have reduced the amount of financial instruments related to our repurchase and reverse repurchase agreements in the table above. Total financial instruments for September 30, 2013 and December 31, 2012 were $1.60 billion and $1.05 billion, respectively.


(3)	As collateral is called or posted per counterparty it is generally called or posted across all positions with each respective counterparty.