Offsetting Assets and Liabilities |
Offsetting Assets and Liabilities Certain of the Company's repurchase agreements and derivative transactions are governed by underlying agreements that generally provide for a right of setoff under master netting arrangements (or similar agreements) in the event of default or in the event of bankruptcy of either party to the transactions. Assets and liabilities subject to such arrangements are presented on a gross basis in the condensed consolidated balance sheets. The following tables present information about the assets and liabilities that are subject to master netting agreements (or similar agreements) and can potentially be offset on the Company’s condensed consolidated balance sheets at March 31, 2016 and December 31, 2015. Offsetting of Derivative Assets As of March 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | $ in thousands Description | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts of Assets presented in the Condensed Consolidated Balance Sheets | | Financial Instruments (1) | | Collateral Received (4) | | Net Amount | Derivatives | 702 |
| | — |
| | 702 |
| | (702 | ) | | — |
| | — |
| Total | 702 |
| | — |
| | 702 |
| | (702 | ) | | — |
| | — |
|
Offsetting of Derivative Liabilities, Repurchase Agreements and Secured Loans As of March 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | | | $ in thousands Description | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts of Liabilities presented in the Condensed Consolidated Balance Sheets | | Financial Instruments (2)(3)(5) | |
Collateral Posted (2)(4)(5) | | Net Amount | Derivatives | 398,143 |
| | — |
| | 398,143 |
| | (165,727 | ) | | (228,178 | ) | | 4,238 |
| Repurchase Agreements | 11,187,159 |
| | — |
| | 11,187,159 |
| | (11,187,159 | ) | | — |
| | — |
| Secured Loans | 1,650,000 |
| | — |
| | 1,650,000 |
| | (1,650,000 | ) | | — |
| | — |
| Total | 13,235,302 |
| | — |
| | 13,235,302 |
| | (13,002,886 | ) | | (228,178 | ) | | 4,238 |
|
Offsetting of Derivative Assets As of December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | $ in thousands Description | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts of Assets presented in the Condensed Consolidated Balance Sheets | | Financial Instruments (1) | | Collateral Received (4) | | Net Amount | Derivatives | 8,659 |
| | — |
| | 8,659 |
| | (4,142 | ) | | (4,517 | ) | | — |
| Total | 8,659 |
| | — |
| | 8,659 |
| | (4,142 | ) | | (4,517 | ) | | — |
|
Offsetting of Derivative Liabilities and Repurchase Agreements As of December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | $ in thousands Description | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | | Net Amounts of Liabilities presented in the Condensed Consolidated Balance Sheets | | Financial Instruments (2)(3) | |
Collateral Posted (2)(4) | | Net Amount | Derivatives | 238,148 |
| | — |
| | 238,148 |
| | (117,240 | ) | | (109,299 | ) | | 11,609 |
| Repurchase Agreements | 12,126,048 |
| | — |
| | 12,126,048 |
| | (12,126,048 | ) | | — |
| | — |
| Secured Loans | 1,650,000 |
| | — |
| | 1,650,000 |
| | (1,650,000 | ) | | — |
| | — |
| Total | 14,014,196 |
| | — |
| | 14,014,196 |
| | (13,893,288 | ) | | (109,299 | ) | | 11,609 |
|
| | (1) | Amounts represent derivatives in an asset position which could potentially be offset against derivatives in a liability position at March 31, 2016 and December 31, 2015, subject to a netting arrangement. |
| | (2) | Amounts represent collateral pledged that is available to be offset against liability balances associated with repurchase agreements, secured loans and derivatives. |
| | (3) | The fair value of securities pledged against the Company's borrowing under repurchase agreements was $12.5 billion and $13.5 billion at March 31, 2016 and December 31, 2015, respectively. |
| | (4) | No cash collateral was posted by the Company's derivative counterparties at March 31, 2016 (December 31, 2015: $4.9 million). Cash collateral posted by the Company on its derivatives was $233.2 million and $109.3 million at March 31, 2016 and December 31, 2015, respectively. |
| | (5) | The fair value of securities pledged against IAS Services LLC's borrowing under secured loans was $2.0 billion and $1.9 billion at March 31, 2016 and December 31, 2015, respectively. No cash collateral was posted by the Company at March 31, 2016 and December 31, 2015. |
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