Valuation (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The table below reflects the value of the Company's Level 1, Level 2, and Level 3 financial instruments that are measured at fair value on a recurring basis as of December 31, 2019:

Description	Level 1			Level 2			Level 3			Total
	(In thousands)
Assets:
Securities, at fair value:
Agency RMBS	$	—		$	1,917,059		$	19,904		$	1,936,963
Non-Agency RMBS	—			76,969			89,581			166,550
CMBS	—			95,063			29,805			124,868
CLOs	—			125,464			44,979			170,443
Asset-backed securities, backed by consumer loans	—			—			48,610			48,610
Corporate debt securities	—			—			1,113			1,113
Corporate equity securities	—			—			1,394			1,394
Loans, at fair value:
Residential mortgage loans	—			—			932,203			932,203
Commercial mortgage loans	—			—			274,759			274,759
Consumer loans	—			—			186,954			186,954
Corporate loans	—			—			18,510			18,510
Investment in unconsolidated entities, at fair value	—			—			71,850			71,850
Financial derivatives–assets, at fair value:
Credit default swaps on asset-backed securities	—			—			993			993
Credit default swaps on asset-backed indices	—			3,319			—			3,319
Credit default swaps on corporate bonds	—			2			—			2
Credit default swaps on corporate bond indices	—			5,599			—			5,599
Interest rate swaps	—			5,468			—			5,468
TBAs	—			596			—			596
Total return swaps	—			—			620			620
Futures	148			—			—			148
Forwards	—			43			—			43
Total assets	$	148		$	2,229,582		$	1,721,275		$	3,951,005
Liabilities:
Securities sold short, at fair value:
Government debt	$	—		$	(72,938	)	$	—		$	(72,938	)
Corporate debt securities	—			(471		)	—			(471		)
Financial derivatives–liabilities, at fair value:
Credit default swaps on asset-backed indices	—			(250		)	—			(250		)
Credit default swaps on corporate bonds	—			(1,693		)	—			(1,693		)
Credit default swaps on corporate bond indices	—			(14,524		)	—			(14,524		)
Interest rate swaps	—			(8,719		)	—			(8,719		)
TBAs	—			(1,012		)	—			(1,012		)
Futures	(45		)	—			—			(45		)
Forwards	—			(169		)	—			(169		)
Total return swaps	—			(773		)	(436		)	(1,209		)
Other secured borrowings, at fair value	—			—			(594,396		)	(594,396		)
Total liabilities	$	(45	)	$	(100,549	)	$	(594,832	)	$	(695,426	)

The table below reflects the value of the Company's Level 1, Level 2, and Level 3 financial instruments at December 31, 2018:

Description	Level 1			Level 2			Level 3		Total
	(In thousands)
Assets:
Cash equivalents	$	12,460		$	—		$	—	$	12,460
Investments, at fair value-
Agency residential mortgage-backed securities	$	—		$	1,442,924		$	7,293	$	1,450,217
U.S. Treasury securities	—			76			—		76
Private label residential mortgage-backed securities	—			211,348			91,291		302,639
Private label commercial mortgage-backed securities	—			33,105			803		33,908
Commercial mortgage loans	—			—			211,185		211,185
Residential mortgage loans	—			—			496,830		496,830
Collateralized loan obligations	—			108,978			14,915		123,893
Consumer loans and asset-backed securities backed by consumer loans	—			—			206,761		206,761
Corporate debt	—			16,074			6,318		22,392
Secured notes	—			—			10,917		10,917
Real estate owned	—			—			34,500		34,500
Common stock	2,200			—			—		2,200
Corporate equity investments	—			—			43,793		43,793
Total investments, at fair value	2,200			1,812,505			1,124,606		2,939,311
Financial derivatives–assets, at fair value-
Credit default swaps on asset-backed securities	—			—			1,472		1,472
Credit default swaps on corporate bond indices	—			733			—		733
Credit default swaps on corporate bonds	—			2,473			—		2,473
Credit default swaps on asset-backed indices	—			8,092			—		8,092
Total return swaps	—			1			—		1
Interest rate swaps	—			7,224			—		7,224
Forwards	—			6			—		6
Total financial derivatives–assets, at fair value	—			18,529			1,472		20,001
Repurchase agreements, at fair value	—			61,274			—		61,274
Total investments, financial derivatives–assets, and repurchase agreements, at fair value	$	2,200		$	1,892,308		$	1,126,078	$	3,020,586
Liabilities:
Investments sold short, at fair value-
Agency residential mortgage-backed securities	$	—		$	(772,964	)	$	—	$	(772,964	)
Government debt	—			(54,151		)	—		(54,151		)
Corporate debt	—			(6,529		)	—		(6,529		)
Common stock	(16,933		)	—			—		(16,933		)
Total investments sold short, at fair value	(16,933		)	(833,644		)	—		(850,577		)

Description	Level 1			Level 2			Level 3			Total
(continued)	(In thousands)
Financial derivatives–liabilities, at fair value-
Credit default swaps on corporate bond indices	$	—		$	(11,557	)	$	—		$	(11,557	)
Credit default swaps on corporate bonds	—			(3,246		)	—			(3,246		)
Credit default swaps on asset-backed indices	—			(2,125		)	—			(2,125		)
Interest rate swaps	—			(3,397		)	—			(3,397		)
Total return swaps	—			(6		)	—			(6		)
Futures	(355		)	—			—			(355		)
Forwards	—			(120		)	—			(120		)
Total financial derivatives–liabilities, at fair value	(355		)	(20,451		)	—			(20,806		)
Other secured borrowings, at fair value	—			—			(297,948		)	(297,948		)
Total investments sold short, financial derivatives–liabilities, and other secured borrowings, at fair value	$	(17,288	)	$	(854,095	)	$	(297,948	)	$	(1,169,331	)

Schedule of Financial Instruments

The following table summarizes the estimated fair value of all other financial instruments not measured at fair value on a recurring basis as of December 31, 2019:

(In thousands)	Fair Value		Carrying Value
Other financial instruments
Assets:
Cash and cash equivalents	$	72,302	$	72,302
Restricted cash	175		175
Due from brokers	79,829		79,829
Reverse repurchase agreements	73,639		73,639
Liabilities:
Repurchase agreements	2,445,300		2,445,300
Other secured borrowings	150,334		150,334
Senior notes, net	88,365		85,298
Due to brokers	2,197		2,197

Cash and cash equivalents generally includes cash held in interest bearing overnight accounts, for which fair value equals the carrying value, and investments which are liquid in nature, such as investments in money market accounts or U.S. Treasury Bills, for which fair value equals the carrying value; such assets are considered Level 1. Restricted cash includes cash held in a segregated account for which fair value equals the carrying value; such assets are considered Level 1. Due from brokers and Due to brokers include collateral transferred to or received from counterparties, along with receivables and payables for open and/or closed derivative positions. These receivables and payables are short term in nature and any collateral transferred consists primarily of cash; fair value of these items is approximated by carrying value and such items are considered Level 1. The Company's reverse repurchase agreements, repurchase agreements, and other secured borrowings are carried at cost, which approximates fair value due to their short term nature. Reverse repurchase agreements, repurchase agreements, and other secured borrowings are classified as Level 2 based on the adequacy of the collateral and their short term nature. The Senior notes are considered Level 3 liabilities given the relative unobservability of the most significant inputs to valuation estimation as well as the lack of trading activity of these instruments. As of December 31, 2019, the estimated fair value of the Company's Senior notes was based on a third-party valuation.

Schedule of Significant Unobservable Inputs, Qualitative Information

The following table identifies the significant unobservable inputs that affect the valuation of the Company's Level 3 assets and liabilities as of December 31, 2019:

	Fair Value		Valuation  Technique	Unobservable Input	Range						Weighted Average
Description					Min			Max
	(In thousands)
Non-Agency RMBS	$	38,754	Market Quotes	Non Binding Third-Party Valuation	$	6.68		$	144.79		$	86.21
CMBS	29,630		Market Quotes	Non Binding Third-Party Valuation	5.08			80.72			64.73
CLOs	38,220		Market Quotes	Non Binding Third-Party Valuation	40.00			96.00			73.98
Agency interest only RMBS	3,753		Market Quotes	Non Binding Third-Party Valuation	1.36			16.61			5.11
Corporate loans	6,010		Market Quotes	Non Binding Third-Party Valuation	100.00			100.00			100.00
ABS backed by consumer loans	139		Market Quotes	Non Binding Third-Party Valuation	95.47			96.78			96.12
Non-Agency RMBS	50,827		Discounted Cash Flows	Yield	3.3		%	60.9		%	10.0		%
				Projected Collateral Prepayments	0.8		%	72.0		%	49.3		%
				Projected Collateral Losses	0.0		%	22.7		%	6.6		%
				Projected Collateral Recoveries	0.0		%	32.4		%	6.9		%
				Projected Collateral Scheduled Amortization	16.9		%	92.9		%	37.2		%
											100.0		%
Non-Agency CMBS	175		Discounted Cash Flows	Yield	10.0		%	10.0		%	10.0		%
				Projected Collateral Prepayments	100.0		%	100.0		%	100.0		%
											100.0		%
Corporate debt and equity	2,507		Discounted Cash Flows	Yield	10.0		%	10.0		%	10.0		%
CLOs	6,759		Discounted Cash Flows	Yield	14.0		%	41.9		%	26.2		%
				Projected Collateral Prepayments	48.5		%	84.6		%	72.5		%
				Projected Collateral Losses	11.7		%	36.4		%	19.9		%
				Projected Collateral Recoveries	3.7		%	15.1		%	7.6		%
											100.0		%
ABS backed by consumer loans	48,471		Discounted Cash Flows	Yield	12.0		%	20.2		%	12.1		%
				Projected Collateral Prepayments	0.0		%	11.2		%	9.7		%
				Projected Collateral Losses	0.6		%	18.0		%	15.4		%
				Projected Collateral Scheduled Amortization	71.3		%	99.4		%	74.9		%
											100.0		%

(continued)	Fair Value			Valuation  Technique	Unobservable Input	Range				Weighted Average
Description						Min		Max
	(In thousands)
Consumer loans	$	186,954		Discounted Cash Flows	Yield	7.0	%	10.0	%	8.1	%
					Projected Collateral Prepayments	0.0	%	44.2	%	16.0	%
					Projected Collateral Losses	3.0	%	84.5	%	8.6	%
					Projected Collateral Scheduled Amortization	15.5	%	95.8	%	75.4	%
										100.0	%
Corporate loans	12,500			Discounted Cash Flows	Yield	15.0	%	18.0	%	16.8	%
Performing commercial mortgage loans	248,214			Discounted Cash Flows	Yield	7.7	%	16.6	%	8.8	%
Non-performing commercial mortgage loans	26,545			Discounted Cash Flows	Yield	9.8	%	14.7	%	12.4	%
					Months to Resolution	1.1		23.0		11.4
Performing and re-performing residential mortgage loans	289,672			Discounted Cash Flows	Yield	1.6	%	19.5	%	6.2	%
Securitized residential mortgage loans(1)(2)	628,415			Discounted Cash Flows	Yield	3.2	%	4.3	%	3.6	%
Non-performing residential mortgage loans	14,116			Discounted Cash Flows	Yield	1.0	%	26.6	%	9.1	%
					Months to Resolution	1.1		165.4		54.6
Total return swaps—asset	620			Discounted Cash Flows	Yield	8.5	%	27.7	%	11.5	%
Credit default swaps on asset-backed securities	993			Net Discounted Cash Flows	Projected Collateral Prepayments	35.4	%	42.0	%	37.3	%
					Projected Collateral Losses	4.2	%	12.4	%	10.2	%
					Projected Collateral Recoveries	10.0	%	18.2	%	15.3	%
					Projected Collateral Scheduled Amortization	36.2	%	41.5	%	37.2	%
										100.0	%
Agency interest only RMBS	16,151			Option Adjusted Spread ("OAS")	LIBOR OAS(3)	93		3,527		701
					Projected Collateral Prepayments	12.3	%	100.0	%	72.3	%
					Projected Collateral Scheduled Amortization	0.0	%	87.7	%	27.7	%
										100.0	%
Investment in unconsolidated entities	41,392			Enterprise Value	Equity Price-to-Book(4)	1.0x		4.7x		1.7x
Investment in unconsolidated entities	30,458			Discounted Cash Flows	Yield(5)	3.7%		14.8%		9.9%
Other secured borrowings, at fair value(1)	(594,396		)	Discounted Cash Flows	Yield	2.9%		4.0%		3.3%
Total return swaps—liability	(436		)	Discounted Cash Flows	Yield	27.7%		27.7%		27.7%

(1) Securitized residential mortgage loans and Other secured borrowings, at fair value, represent financial assets and liabilities of the Company's CFEs as discussed in Note 2.

(2) Includes $1.5 million of non-performing securitized residential mortgage loans.

(3) Shown in basis points.

(4) Represent an estimation of where market participants might value an enterprise on a price-to-book basis.

(5)

Represents the significant unobservable inputs used to fair value the financial instruments of the unconsolidated entity. The fair value of such financial instruments is the largest component of the valuation of such entity as a whole.

The following table identifies the significant unobservable inputs that affect the valuation of the Company's Level 3 assets and liabilities as of December 31, 2018:

	Fair Value		Valuation  Technique	Unobservable Input	Range						Weighted Average
Description					Min			Max
	(In thousands)
Private label residential mortgage-backed securities	$	36,945	Market Quotes	Non Binding Third-Party Valuation	$	17.42		$	178.00		$	78.31
Collateralized loan obligations	5,828		Market Quotes	Non Binding Third-Party Valuation	2.64			375.00			167.78
Corporate debt, non-exchange traded corporate equity, and secured notes	13,976		Market Quotes	Non Binding Third-Party Valuation	9.69			91.00			59.18
Private label commercial mortgage-backed securities	576		Market Quotes	Non Binding Third-Party Valuation	5.93			6.36			6.14
Agency interest only residential mortgage-backed securities	744		Market Quotes	Non Binding Third-Party Valuation	1.70			9.12			5.64
Private label residential mortgage-backed securities	54,346		Discounted Cash Flows	Yield	3.5		%	66.1		%	10.7		%
				Projected Collateral Prepayments	16.0		%	92.1		%	50.4		%
				Projected Collateral Losses	0.0		%	23.1		%	8.7		%
				Projected Collateral Recoveries	1.5		%	14.6		%	7.3		%
				Projected Collateral Scheduled Amortization	6.1		%	61.8		%	33.6		%
											100.0		%
Private label commercial mortgage-backed securities	227		Discounted Cash Flows	Yield	3.4		%	3.4		%	3.4		%
				Projected Collateral Losses	2.0		%	2.0		%	2.0		%
				Projected Collateral Recoveries	6.6		%	6.6		%	6.6		%
				Projected Collateral Scheduled Amortization	91.4		%	91.4		%	91.4		%
											100.0		%
Corporate debt and non-exchange traded corporate equity	4,793		Discounted Cash Flows	Yield	17.5		%	17.5		%	17.5		%

(continued)	Fair Value			Valuation  Technique	Unobservable Input	Range				Weighted Average
Description						Min		Max
	(In thousands)
Collateralized loan obligations	$	9,087		Discounted Cash Flows	Yield	12.6	%	103.1	%	26.7	%
					Projected Collateral Prepayments	8.1	%	88.4	%	65.2	%
					Projected Collateral Losses	3.7	%	40.8	%	13.5	%
					Projected Collateral Recoveries	4.2	%	38.0	%	11.9	%
					Projected Collateral Scheduled Amortization	3.5	%	13.5	%	9.4	%
										100.0	%
Consumer loans and asset-backed securities backed by consumer loans	206,761			Discounted Cash Flows	Yield	7.0	%	18.3	%	8.5	%
					Projected Collateral Prepayments	0.0	%	45.9	%	33.5	%
					Projected Collateral Losses	2.6	%	84.8	%	9.1	%
					Projected Collateral Scheduled Amortization	15.2	%	96.6	%	57.4	%
										100.0	%
Performing commercial mortgage loans	163,876			Discounted Cash Flows	Yield	8.0	%	22.5	%	9.6	%
Non-performing commercial mortgage loans and commercial real estate owned	80,513			Discounted Cash Flows	Yield	9.6	%	27.4	%	13.2	%
					Months to Resolution	3.0		16.0		7.9
Performing residential mortgage loans	171,367			Discounted Cash Flows	Yield	2.7	%	12.9	%	6.0	%
Securitized residential mortgage loans(1)	314,202			Discounted Cash Flows	Yield	4.3	%	4.6	%	4.6	%
Non-performing residential mortgage loans and residential real estate owned	12,557			Discounted Cash Flows	Yield	4.3	%	25.1	%	11.3	%
					Months to Resolution(2)	1.9		42.2		27.8
Credit default swaps on asset-backed securities	1,472			Net Discounted Cash Flows	Projected Collateral Prepayments	33.6	%	42.0	%	36.5	%
					Projected Collateral Losses	11.1	%	15.6	%	12.8	%
					Projected Collateral Recoveries	10.3	%	18.7	%	15.8	%
					Projected Collateral Scheduled Amortization	32.0	%	36.5	%	34.9	%
										100.0	%
Agency interest only residential mortgage-backed securities	6,549			Option Adjusted Spread ("OAS")	LIBOR OAS(3)	211		3,521		677
					Projected Collateral Prepayments	37.7	%	100.0	%	66.2	%
					Projected Collateral Scheduled Amortization	0.0	%	62.3	%	33.8	%
										100.0	%
Non-exchange traded common equity investment in mortgage-related entity	6,750			Enterprise Value	Equity Price-to-Book(4)	3.3x		3.3x		3.3x
Non-exchange traded preferred equity investment in mortgage-related entity	27,317			Enterprise Value	Equity Price-to-Book(4)	1.1x		1.1x		1.1x
Non-exchange traded preferred equity investment in loan origination entity	3,000			Recent Transactions	Transaction Price	N/A		N/A		N/A
Non-controlling equity interest in limited liability company	5,192			Discounted Cash Flows	Yield(5)	12.9%		16.1%		15.4%
Other secured borrowings, at fair value(1)	(297,948		)	Discounted Cash Flows	Yield	3.9%		4.4%		4.3%

(1) Securitized residential mortgage loans and Other secured borrowings, at fair value, represent financial assets and liabilities of the Company's CFE as discussed in Note 2.

(2) Excludes certain loans that are re-performing.

(3) Shown in basis points.

(4) Represent an estimation of where market participants might value an enterprise on a price-to-book basis.

(5) Represents the significant unobservable inputs used to fair value the financial instruments of the limited liability company. The fair value of such financial instruments is the largest component of the valuation of the limited liability company as a whole.

Fair Value Measurement Using Significant Unobservable Inputs

The table below includes a roll-forward of the Company's financial instruments for the year ended December 31, 2019 (including the change in fair value), for financial instruments classified by the Company within Level 3 of the valuation hierarchy.

Year Ended December 31, 2019

(In thousands)	Beginning Balance as of  January 1, 2019			Accreted Discounts / (Amortized Premiums)			Net Realized Gain/ (Loss)			Change in Net Unrealized Gain/(Loss)			Purchases/Payments(1)		Sales/Issuances(2)			Transfers Into Level 3		Transfers Out of Level 3			Ending Balance as of  December 31, 2019
Assets:
Securities, at fair value:
Agency RMBS	$	7,293		$	(3,464	)	$	(1,787	)	$	808		$	13,818	$	(1,306	)	$	5,370	$	(828	)	$	19,904
Non-Agency RMBS	91,291			270			5,636			(3,654		)	21,512		(33,664		)	15,354		(7,164		)	89,581
CMBS	803			16			180			(246		)	31,464		(5,271		)	2,859		—			29,805
CLOs	14,915			(268		)	(3,190		)	2,329			25,531		(5,112		)	11,984		(1,210		)	44,979
Asset-backed securities backed by consumer loans	22,800			(2,520		)	(891		)	873			42,137		(13,789		)	—		—			48,610
Corporate debt securities	6,318			22			(1,341		)	188			11,024		(15,098		)	—		—			1,113
Corporate equity securities	1,534			—			(1,807		)	205			1,462		—			—		—			1,394
Loans, at fair value:
Residential mortgage loans	496,830			(6,081		)	1,466			8,800			661,813		(230,625		)	—		—			932,203
Commercial mortgage loans	195,301			(282		)	2,412			(2,083		)	175,689		(96,278		)	—		—			274,759
Consumer loans	183,961			(28,521		)	(6,291		)	3,000			183,994		(149,189		)	—		—			186,954
Corporate loan	—			36			—			(36		)	18,510		—			—		—			18,510
Investments in unconsolidated entities, at fair value	72,298			—			1,545			8,664			42,173		(52,830		)	—		—			71,850
Financial derivatives–assets, at fair value-
Credit default swaps on asset-backed securities	1,472			—			528			(479		)	33		(561		)	—		—			993
Total return swaps	—			—			160			620			—		(160		)	—		—			620
Total assets, at fair value	$	1,094,816		$	(40,792	)	$	(3,380	)	$	18,989		$	1,229,160	$	(603,883	)	$	35,567	$	(9,202	)	$	1,721,275
Liabilities:
Financial derivatives–assets, at fair value-
Total return swaps	$	—		$	—		$	(15	)	$	(436	)	$	15	$	—		$	—	$	—		$	(436	)
Other secured borrowings, at fair value	(297,948		)	—			—			(502		)	182,291		(478,237		)	—		—			(594,396		)
Total liabilities, at fair value	$	(297,948	)	$	—		$	(15	)	$	(938	)	$	182,306	$	(478,237	)	$	—	$	—		$	(594,832	)

(1) For Investments in unconsolidated entities, at fair value, amount represents contributions to investments in unconsolidated entities.

(2) For Investments in unconsolidated entities, at fair value, amount represents distributions from investments in unconsolidated entities.

All amounts of net realized and change in net unrealized gain (loss) in the table above are reflected in the accompanying Consolidated Statement of Operations. The table above incorporates changes in net unrealized gain (loss) for both Level 3 financial instruments held by the Company at December 31, 2019, as well as Level 3 financial instruments disposed of by the Company during the year ended December 31, 2019. For Level 3 financial instruments held by the Company at December 31, 2019, change in net unrealized gain (loss) of $2.4 million, $11.5 million, $5.2 million, $0.1 million, $(0.4) million, and $0.1 million, for the year ended December 31, 2019 relate to securities, loans, investments in unconsolidated entities, financial derivatives–assets, financial derivatives–liabilities, and other secured borrowings, at fair value, respectively.

At December 31, 2019, the Company transferred $9.2 million of assets from Level 3 to Level 2 and $35.6 million from Level 2 to Level 3. Transfers between these hierarchy levels were based on the availability of sufficient observable inputs to

meet Level 2 versus Level 3 criteria. The leveling of each financial instrument is reassessed at the end of each period, and is based on pricing information received from third-party pricing sources.

The tables below include a roll-forward of the Company's financial instruments for the year ended December 31, 2018 (including the change in fair value), for financial instruments classified by the Company within Level 3 of the valuation hierarchy.

Level 3—Fair Value Measurement Using Significant Unobservable Inputs:

Year Ended December 31, 2018

(In thousands)	Ending Balance as of  December 31, 2017			Accreted Discounts / (Amortized Premiums)			Net Realized Gain/ (Loss)			Change in Net Unrealized Gain/(Loss)			Purchases/ Payments		Sales/ Issuances			Transfers Into Level 3		Transfers Out of Level 3			Ending Balance as of  December 31, 2018
Assets:
Investments, at fair value-
Agency residential mortgage-backed securities	$	6,173		$	(2,233	)	$	(10	)	$	175		$	2,753	$	(1,169	)	$	2,616	$	(1,012	)	$	7,293
Private label residential mortgage-backed securities	101,297			383			1,838			(2,135		)	75,685		(78,487		)	7,074		(14,364		)	91,291
Private label commercial mortgage-backed securities	12,347			(243		)	2,229			2,120			1,481		(16,896		)	—		(235		)	803
Commercial mortgage loans	108,301			790			1,146			1,944			149,053		(50,049		)	—		—			211,185
Residential mortgage loans	182,472			(1,965		)	1,011			(34		)	402,235		(86,889		)	—		—			496,830
Collateralized loan obligations	24,911			(351		)	317			(2,268		)	33,549		(33,115		)	3,959		(12,087		)	14,915
Consumer loans and asset-backed securities backed by consumer loans	135,258			(29,320		)	8,415			(1,092		)	228,354		(134,854		)	—		—			206,761
Corporate debt	23,947			56			241			(964		)	7,665		(17,688		)	—		(6,939		)	6,318
Secured notes	—			870			—			(1,221		)	11,268		—			—		—			10,917
Real estate owned	26,277			—			(653		)	(1,003		)	12,793		(2,914		)	—		—			34,500
Corporate equity investments	37,465			—			1,671			8,299			12,708		(16,350		)	—		—			43,793
Total investments, at fair value	658,448			(32,013		)	16,205			3,821			937,544		(438,411		)	13,649		(34,637		)	1,124,606
Financial derivatives–assets, at fair value-
Credit default swaps on asset-backed securities	3,140			—			(687		)	715			102		(1,798		)	—		—			1,472
Total financial derivatives– assets, at fair value	3,140			—			(687		)	715			102		(1,798		)	—		—			1,472
Total investments and financial derivatives–assets, at fair value	$	661,588		$	(32,013	)	$	15,518		$	4,536		$	937,646	$	(440,209	)	$	13,649	$	(34,637	)	$	1,126,078
Liabilities:
Other secured borrowings, at fair value	$	(125,105	)	$	—		$	—		$	758		$	49,731	$	(223,332	)	$	—	$	—		$	(297,948	)
Total other secured borrowings, at fair value	$	(125,105	)	$	—		$	—		$	758		$	49,731	$	(223,332	)	$	—	$	—		$	(297,948	)

All amounts of net realized and change in net unrealized gain (loss) in the table above are reflected in the accompanying Consolidated Statement of Operations. The table above incorporates changes in net unrealized gain (loss) for both Level 3 financial instruments held by the Company at December 31, 2018, as well as Level 3 financial instruments disposed of by the Company during the year ended December 31, 2018. For Level 3 financial instruments held by the Company at December 31, 2018, change in net unrealized gain (loss) of $5.3 million, $(0.6) million, and $0.8 million, for the year ended December 31, 2018 relate to investments, financial derivatives–assets, and other secured borrowings, at fair value, respectively.

At December 31, 2018, the Company transferred $34.6 million of securities from Level 3 to Level 2 and $13.6 million from Level 2 to Level 3. Transfers between these hierarchy levels were based on the availability of sufficient observable inputs to meet Level 2 versus Level 3 criteria. The leveling of each financial instrument is reassessed at the end of each period, and is based on pricing information received from third-party pricing sources.