Counterparty Risk

9 Months Ended

Sep. 30, 2020

The Company is exposed to concentrations of counterparty risk. It seeks to mitigate such risk by diversifying its exposure among various counterparties, when appropriate. The following table summarizes the Company's exposure to counterparty risk as of September 30, 2020 and December 31, 2019.

September 30, 2020:


	Amount of Exposure		Number of Counterparties with Exposure	Maximum Percentage of Exposure to a Single Counterparty(1)
	(In thousands)
Cash and cash equivalents	$	126,783	10	28.5	%
Collateral on repurchase agreements held by dealers(2)	1,810,825		24	18.6	%
Due from brokers	63,991		22	35.4	%
Receivable for securities sold(3)	5,086		2	87.0	%

(1)Each counterparty is a large creditworthy financial institution.

(2)Includes securities, loans, and REO as well as cash posted as collateral for repurchase agreements.

(3)Included in Investment related receivables on the Condensed Consolidated Balance Sheet.

December 31, 2019:


	Amount of Exposure		Number of Counterparties with Exposure	Maximum Percentage of Exposure to a Single Counterparty(1)
	(In thousands)
Cash and cash equivalents	$	72,302	11	42.2	%
Collateral on repurchase agreements held by dealers(2)	2,793,696		28	13.8	%
Due from brokers	79,829		24	30.9	%
Receivable for securities sold(3)	69,995		5	62.3	%

(1)Each counterparty is a large creditworthy financial institution.

(2)Includes securities, loans, and REO as well as cash posted as collateral for repurchase agreements.

(3)Included in Investment related receivables on the Condensed Consolidated Balance Sheet.