NOTE 5 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The components of financial instruments owned and financial instruments sold, but not yet purchased, at June 30, 2018 and December 31, 2017 are as follows (in thousands):

	June 30, 2018		December 31, 2017
Financial instruments owned:
U.S. government securities	$	19,943	$	13,466
U.S. government agency securities		138,884		147,223
Mortgage-backed securities:
Agency		362,939		302,445
Non-agency		20,661		29,356
Asset-backed securities		114,350		76,752
Corporate securities:
Fixed income securities		359,652		325,471
Equity securities		54,554		46,802
Sovereign debt		48,088		32,470
State and municipal securities		158,352		169,699
	$	1,277,423	$	1,143,684
Financial instruments sold, but not yet purchased:
U.S. government securities	$	444,941	$	442,402
U.S. government agency securities		30,623		10,348
Mortgage-backed securities:
Agency		143,284		86,612
Corporate securities:
Fixed income securities		243,333		180,755
Equity securities		63,916		38,510
Sovereign debt		18,584		20,236
	$	944,681	$	778,863

At June 30, 2018 and December 31, 2017, financial instruments owned in the amount of $838.6 million and $810.3 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings. Our financial instruments owned are presented on a trade-date basis in the consolidated statements of financial condition.

Financial instruments sold, but not yet purchased, represent obligations of our company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices in future periods. We are obligated to acquire the securities sold short at prevailing market prices in future periods, which may exceed the amount reflected in the consolidated statements of financial condition.