Fair Value Measurements (Tables)

12 Months Ended

Oct. 31, 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.

October 31, 2014
(in thousands)		Level 1		Level 2		Level 3			Other Assets Not Held at Fair Value		Total

Financial assets:
Cash equivalents	$	19,599	$	60,312	$	-		$	-	$	79,911
Investments:
Investment securities, trading:
Short-term debt		-		156,972			-		-		156,972
Other debt - consolidated sponsored funds
and separately managed accounts		10,799		73,025			-		-		83,824
Equity - consolidated sponsored funds
and separately managed accounts		86,504		53,745			-		-		140,249
Investment securities, available-for-sale		23,600		6,567		-			-		30,167
Investments in non-consolidated CLO
entities⁽¹⁾		-		-		-			4,033		4,033
Investments in equity method investees⁽²⁾		-		-		-			206,352		206,352
Investments, other⁽³⁾		-		61		-			2,947		3,008
Derivative instruments		-		4,416		-			-		4,416
Assets of consolidated CLO entity:
Cash equivalents		8,697		-		-			-		8,697
Bank loans and other investments		-		146,315		801			-		147,116
Total financial assets	$	149,199	$	501,413	$	801		$	213,332	$	864,745

Financial liabilities:
Derivative instruments	$	-	$	2,618	$	-		$	-	$	2,618
Securities sold, not yet purchased		-		981		-			-		981
Liabilities of consolidated CLO entity:
Senior and subordinated note obligations		-		2,672		149,310			-		151,982
Total financial liabilities	$	-	$	6,271	$	149,310		$	-	$	155,581

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. There was
	no re-measurement of these assets during the years ended October 31, 2014 or 2013.
⁽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

(in thousands)		2014		2013
Transfers from Level 1 into Level 2⁽¹⁾		$	249	$	29
Transfers from Level 2 into Level 1⁽²⁾			1,192		1,304

⁽¹⁾	Transfers from Level 1 into Level 2 primarily represent debt and equity securities formerly classified as Level 1 for
	which unadjusted quoted market prices in active markets became unavailable in the current period.
⁽²⁾	Transfers from Level 2 into Level 1 primarily represent debt and equity securities formerly classified as Level 2 for
	which unadjusted quoted market prices in active markets became available in the current period.

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

				2014				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 entities		Senior and subordinated note obligations of consolidated CLO entities
Beginning balance			$	1,245	$	276,476	$	2,203	$	443,946
Issuance of senior and subordinated notes
	and redeemable preferred shares			-		421,523		-		-
Deconsolidation of senior and subordinated
	notes and redeemable preferred shares			-		(419,193)		-		-
Net gains (losses) on investments and
	note obligations included in net
	income⁽¹⁾			(183)		(1,209)		25		10,030
Sales				(1,061)		-		(132)		-
Settlements				-		-		(408)		-
Payment-in-kind				-		-		7		-
Amortization of original issue discount
	on senior notes			-		75		0		-
Principal paydown				-		(128,362)		0		(177,500)
Transfers into Level 3⁽²⁾				800		-		922		-
Transfers out of Level 3⁽³⁾				-		-		(1,372)		-
Ending balance			$	801	$	149,310	$	1,245	$	276,476
Change in unrealized gains (losses)
	included in net income relating to
	assets and liabilities held		$	35	$	(1,196)	$	25	$	10,030

(1)		Substantially all net gains (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.
(3)		Transfers out of Level 3 into Level 2 of the fair value measurement hierarchy 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

October 31, 2014			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	$	149,310	Income-approach	Discount rate	75-250 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 apply to the more senior tranches in the CLO note structure;
	higher spreads apply 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 sales, recovery through bankruptcy restructuring or other
	settlement processes. The prepayment rate is the rate at which the underlying collateral is expected to repay principal.