Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2014

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.

April 30, 2014
(in thousands)		Level 1		Level 2		Level 3			Other Assets Not Held at Fair Value		Total

Financial assets:
Cash equivalents	$	11,684	$	16,199	$	-		$	-	$	27,883
Investments:
Investment securities, trading:
Short-term debt		-		192,509			-		-		192,509
Other debt - consolidated sponsored funds
and separately managed accounts		3,705		87,269			-		-		90,974
Equity - consolidated sponsored funds
and separately managed accounts		63,108		57,573			-		-		120,681
Investment securities, available-for-sale		12,583		6,079		-			-		18,662
Investment in non-consolidated CLO
entities⁽¹⁾		-		-		-			7,714		7,714
Investments in equity method investees⁽²⁾		-		-		-			214,238		214,238
Investments, other⁽³⁾		-		61		-			3,728		3,789
Derivative instruments		-		819		-			-		819
Assets of consolidated CLO entities:
Cash equivalents		65,600		-		-			-		65,600
Bank loans and other investments		-		601,172		7			-		601,179
Total financial assets	$	156,680	$	961,681	$	7		$	225,680	$	1,344,048

Financial liabilities:
Derivative instruments	$	-	$	4,815	$	-		$	-	$	4,815
Securities sold, not yet purchased		-		716		-			-		716
Liabilities of consolidated CLO entities:											-
Senior and subordinated note obligations		-		2,655		605,826			-		608,481
Redeemable preferred shares		-		-		27,333			-		27,333
Total financial liabilities	$	-	$	8,186	$	633,159		$	-	$	641,345

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

Financial assets:
Cash equivalents		$	104,261	$	2,900	$	-		$	-	$	107,161
Investments:
Investment securities, trading:
Short-term debt			-		20,116			-		-		20,116
Other debt - consolidated sponsored funds
and separately managed accounts			7,053		90,597			-		-		97,650
Equity - consolidated sponsored funds
and separately managed accounts			61,615		56,143			-		-		117,758
Investment securities, available-for-sale			17,083		5,644		-			-		22,727
Investments in non-consolidated CLO
entities⁽¹⁾			-		-		-			5,378		5,378
Investments in equity method investees⁽²⁾			-		-		-			269,683		269,683
Investments, other⁽³⁾			-		60		-			2,951		3,011
Derivative instruments			-		334		-			-		334
Assets of consolidated CLO entities:
Cash equivalents			29,970		-		-			-		29,970
Bank loans and other investments			-		684,436		1,245			-		685,681
Total financial assets		$	219,982	$	860,230	$	1,245		$	278,012	$	1,359,469

Financial liabilities:
Derivative instruments		$	-	$	8,412	$	-		$	-	$	8,412
Securities sold, not yet purchased			-		687		-			-		687
Liabilities of consolidated CLO entities:
Senior and subordinated note obligations			-		2,651		276,476			-		279,127
Total financial liabilities		$	-	$	11,750	$	276,476		$	-	$	288,226

⁽¹⁾	The Company’s investments in these CLO entities are measured at fair value on a non-recurring basis using Level 3 inputs.
	The investments are carried at amortized cost (or cost for warehouse stage entities) unless facts and circumstances
	indicate that the investments have been impaired, at which time the investments are written down to fair value.
⁽²⁾	Investments in equity method investees are not measured at fair value in accordance with GAAP.
⁽³⁾	Investments, other, includes 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 April 30,				Six Months Ended April 30,
(in thousands)			2014		2013		2014		2013
Transfers from Level 1 into Level 2⁽¹⁾		$	542	$	120	$	214	$	120
Transfers from Level 2 into Level 1⁽²⁾			1,524		137		1,027		1,743

⁽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
			April 30, 2014				April 30, 2013
(in thousands)			Bank loans and other investments of consolidated CLO entities		Senior and subordinated note obligations and redeemable preferred shares of consolidated CLO entities		Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity

Beginning balance		$	7	$	665,970	$	2,658	$	408,924
Net gains (losses) on investments and
	note obligations included in net
	income⁽¹⁾		-		1,026		57		1,671
Amortization of original issue discount
	on senior notes		-		75		-		-
Principal paydown			-		(33,912)		-		(45,135)
Transfers into Level 3⁽²⁾			-		-		104		-
Ending balance		$	7	$	633,159	$	2,819	$	365,460
Change in unrealized gains (losses)
	included in net income relating to
	assets and liabilities held	$	-	$	1,026	$	57	$	1,671

				Six Months Ended				Six Months Ended
				April 30, 2014				April 30, 2013
(in thousands)				Bank loans and other investments of consolidated CLO entities		Senior and subordinated note obligations and redeemable preferred shares of consolidated CLO entities		Bank loans and other investments of consolidated CLO entity		Senior and subordinated note obligations of consolidated CLO entity

Beginning balance			$	1,245	$	276,476	$	2,203	$	443,946
Issuance of senior and subordinated notes
	and redeemable preferred shares			-		421,523		-		-
Net gains (losses) on investments and
	note obligations included in net
	income⁽¹⁾			(186)		(1,135)		21		5,256
Sales				(1,052)		-		0		-
Amortization of original issue discount
	on senior notes			0		75		-		-
Principal paydown				0		(63,780)		-		(83,742)
Transfers into Level 3⁽²⁾				-		-		595		-
Ending balance			$	7	$	633,159	$	2,819	$	365,460
Change in unrealized gains (losses)
	included in net income relating to
	assets and liabilities held		$	(9)	$	(1,135)	$	21	$	5,256
(1)		Substantially all net gains and losses on investments and note obligations and redeemable preferred shares attributable to the assets and
		borrowings of the Company's consolidated CLO entities 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 the securities, including a loan that utilized a discount applied to the demanded yield.

Summary of quantitative information about Level 3 fair value measurements

April 30, 2014			Valuation	Unobservable	Value/
($ in thousands)		Fair Value	Technique	Inputs⁽¹⁾	Range

				Prepayment rate	30 percent
Senior and subordinated note				Recovery rate	70 percent
obligations and redeemable				Default rate	100-200 bps
preferred shares	$	633,159	Income approach	Discount rate	85-700 bps

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

					Prepayment rate	30 percent
					Recovery rate	70 percent
Senior and subordinated					Default rate	200 bps
note obligations		$	276,476	Income approach	Discount rate	105-375 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. The recovery rate is
	the expected recovery of defaulted amounts received through asset sale or recovery through bankruptcy restructuring or other
	settlement processes. The prepayment rate is the rate at which the underlying collateral is expected to repay principal.