Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2013

Fair Value Measurements Disclosure Table [Abstract]

Summary of the assets and liabilites measured at fair value on a recurring basis and their assigned levels within the hierarchy.

July 31, 2013
(in thousands)		Level 1		Level 2		Level 3			Other Assets Not Held at Fair Value		Total

Financial assets:
Cash equivalents	$	99,310	$	3,700	$	-		$	-	$	103,010
Investments:
Investment securities, trading:
Cash management assets		-		10,477			-		-		10,477
Debt - consolidated sponsored funds
and separately managed accounts		74,601		73,825			-		-		148,426
Equity - consolidated sponsored funds
and separately managed accounts		52,137		38,085			-		-		90,222
Investment securities, available-for-sale		12,099		5,358		-			-		17,457
Investment in non-consolidated CLO
entity⁽¹⁾		-		-		-			317		317
Investments in equity method investees⁽²⁾		-		-		-			271,044		271,044
Investments, other⁽³⁾		-		61		-			7,470		7,531
Derivative instruments		-		1,302		-			-		1,302
Assets of consolidated CLO entity:
Cash equivalents		56,725		-		-			-		56,725
Bank loans and other investments		-		242,946		3,045			-		245,991
Total financial assets	$	294,872	$	375,754	$	3,045		$	278,831	$	952,502

Financial liabilities:
Derivative instruments	$	-	$	6,668	$	-		$	-	$	6,668
Securities sold, not yet purchased		-		1,572		-			-		1,572
Liabilities of consolidated CLO entity:
Senior and subordinated note obligations		-		2,635		288,540			-		291,175
Total financial liabilities	$	-	$	10,875	$	288,540		$	-	$	299,415

October 31, 2012
(in thousands)			Level 1		Level 2		Level 3			Other Assets Not Held at Fair Value		Total

Financial assets:
Cash equivalents		$	16,390	$	139,469	$	-		$	-	$	155,859
Investments:
Investment securities, trading – debt			4,512		66,293			-		-		70,805
Investment securities, trading – equity			87,991		31,457			-		-		119,448
Investment securities, available-for-sale			26,736		4,412		-			-		31,148
Investment in non-consolidated CLO
entity⁽¹⁾			-		-		-			350		350
Investments in equity method investees⁽²⁾			-		-		-			257,652		257,652
Investments, other⁽³⁾			-		60		-			7,470		7,530
Derivative instruments			-		2,229		-			-		2,229
Assets of consolidated CLO entity:
Cash equivalents			34,561		-		-			-		34,561
Bank loans and other investments			98		428,282		2,203			-		430,583
Total financial assets		$	170,288	$	672,202	$	2,203		$	265,472	$	1,110,165

Financial liabilities:
Derivative instruments		$	-	$	788	$	-		$	-	$	788
Securities sold, not yet purchased			-		26,142		-			-		26,142
Liabilities of consolidated CLO entity:
Senior and subordinated note obligations			-		2,659		443,946			-		446,605
Total financial liabilities		$	-	$	29,589	$	443,946		$	-	$	473,535
(1)	The Company’s investment in this CLO entity is measured at fair value on a non-recurring basis using Level 3 inputs.
	The investment is carried at amortized cost unless facts and circumstances indicate that the investment has been
	impaired, at which time the investment is written down to fair value. There was no re-measurement of this asset during
	the nine month period ended July 31, 2013 or the twelve month period ended October 31, 2012.
(2)	Investments in equity method investees are not measured at fair value in accordance with GAAP.
(3)	Investments, other include investments carried at cost that are not measured at fair value in accordance with GAAP.

Summary of fair value transfers between level 1 and level 2

			Three Months Ended July 31,				Nine Months Ended July 31,
(in thousands)			2013		2012		2013		2012
Transfers from Level 1 into Level 2⁽¹⁾		$	237	$	7,861	$	43	$	18,104
Transfers from Level 2 into Level 1⁽²⁾			149		-		1,332		-

⁽¹⁾	Transfers from Level 1 into Level 2 primarily represent debt and equity securities that were valued based on prices of similar
	securities because unadjusted quoted market prices were not available in the current period.
⁽²⁾	Transfers from Level 2 into Level 1 primarily represent debt and equity securities due to the availability of unadjusted quoted
	market prices in active markets.

Summary of the changes in Level 3 assets and liabilities measured at fair value on a recurring basis

			Three Months Ended				Three Months Ended
			July 31, 2013				July 31, 2012
(in thousands)			Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity		Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity

Beginning balance		$	2,819	$	365,460	$	2,150	$	483,062
Net gains (losses) on investments and
	note obligations included in net
	income⁽¹⁾		(101)		(720)		(139)		(8,599)
Principal paydown			0		(76,200)		0		-
Transfers into Level 3⁽²⁾			327		-		122		-
Transfers out of Level 3⁽³⁾			-		-		(15)		-
Ending balance		$	3,045	$	288,540	$	2,118	$	474,463
Change in unrealized (losses) gains
	included in net income relating to
	assets and liabilities held	$	(101)	$	(720)	$	(139)	$	(8,599)

				Nine Months Ended				Nine Months Ended
				July 31, 2013				July 31, 2012
(in thousands)				Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity		Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity

Beginning balance			$	2,203	$	443,946	$	5,910	$	477,699
Net gains (losses) on investments and
	note obligations included in net
	income⁽¹⁾			(80)		4,536		(139)		(603)
Principal paydown				0		(159,942)		0		-
Transfers into Level 3⁽²⁾				922		-		137		-
Transfers out of Level 3⁽³⁾				-		-		(3,790)		(2,633)
Ending balance			$	3,045	$	288,540	$	2,118	$	474,463
Change in unrealized (losses) gains
	included in net income relating to
	assets and liabilities held		$	(80)	$	4,536	$	(139)	$	(603)
(1)		Substantially all net gains and losses on investments and note obligations attributable to the assets and borrowings of the Company's
		consolidated CLO entity are allocated to non-controlling and other beneficial interests on the Company's Consolidated Statements of Income.
(2)		Transfers into Level 3 were the result of a reduction in the availability of significant observable inputs used in determining the fair value
		of a second lien term loan. Fair value was determined utilizing a discounted cash flow analysis.
(3)		Transfers out of Level 3 into Level 2 were due to an increase in the observability of the inputs used in determining the fair value of certain
		instruments.

Summary of quantitative information about Level 3 fair value measurements

July 31, 2013			Valuation	Unobservable
($ in thousands)		Fair Value	Technique	Inputs⁽¹⁾	Range

Liabilities of consolidated CLO entity:

				Prepayment rate	30 percent
				Recovery rate	70 percent
Senior and subordinated				Default rate	200 bps
note obligations	$	288,540	Income approach	Discount rate	110-475 bps

	October 31, 2012			Valuation	Unobservable
	($ in thousands)		Fair Value	Technique	Inputs⁽¹⁾	Range

	Liabilities of consolidated CLO entity:

					Prepayment rate	30 percent
					Recovery rate	70 percent
	Senior and subordinated				Default rate	200 bps
	note obligations	$	443,946	Income approach	Discount rate	135-700 bps
⁽¹⁾	Discount rate refers to spread over LIBOR. Lower spreads relate to the more senior tranches in the CLO note structure;
	higher spreads relate to the less senior tranches. The default rate refers to the constant annual default rate. Recovery rate is the
	expected recovery of defaulted amounts received through asset sale or recovery through bankruptcy restructuring or other
	settlement processes. Prepayment rate is the rate at which the underlying collateral is expected to repay principal.