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 September 30, 2018 and December 31, 2017 are as follows (in thousands):

	September 30, 2018		December 31, 2017
Financial instruments owned:
U.S. government securities	$	36,214	$	13,466
U.S. government agency securities		167,886		147,223
Mortgage-backed securities:
Agency		380,044		302,445
Non-agency		23,747		29,356
Asset-backed securities		29,806		76,752
Corporate securities:
Fixed income securities		290,627		325,471
Equity securities		69,205		46,802
Sovereign debt		15,996		32,470
State and municipal securities		149,207		169,699
	$	1,162,732	$	1,143,684
Financial instruments sold, but not yet purchased:
U.S. government securities	$	512,275	$	442,402
U.S. government agency securities		—		10,348
Mortgage-backed securities:
Agency		95,312		86,612
Corporate securities:
Fixed income securities		213,335		180,755
Equity securities		78,895		38,510
Sovereign debt		11,557		20,236
	$	911,374	$	778,863

At September 30, 2018 and December 31, 2017, financial instruments owned in the amount of $534.6 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.