REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2015

REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS [Abstract]

Schedule of Repurchase Arrangements and Similar Borrowings

Repurchase arrangements and similar borrowings (and related pledged collateral, including accrued interest receivable), classified by collateral type and remaining maturities, and related weighted average borrowing rates as of the indicated dates were as follows (dollars in thousands):

Collateral Type	Collateral Carrying Amount		Accrued Interest Receivable		Borrowings Outstanding		Average Borrowing Rates
June 30, 2015
Borrowings with maturities of 30 days or less:
Agency Securities	$	10,629,834	$	21,600	$	10,130,657		0.38	%
Borrowings with maturities greater than 30 days:
Agency Securities (31 to 90 days)		1,251,712		2,802		1,185,000		0.44
Agency Securities (greater than 90 days)		1,747,074		4,498		1,650,000		0.71
Similar borrowings:
Collateral for structured financings*		1,959		–		1,959		8.11
	$	13,630,579	$	28,900	$	12,967,616		0.43
Quarter-end borrowing rates adjusted for effects of related derivative financial instruments (“Derivatives”)  held as cash flow hedges (see NOTE 6)								0.66
December 31, 2014
Borrowings with maturities of 30 days or less:
Agency Securities	$	10,401,080	$	24,045	$	9,878,889		0.35
Borrowings with maturities greater than 30 days:
Agency Securities (31 to 90 days)		1,205,570		2,248		1,150,924		0.35
Agency Securities (greater than 90 days)		1,874,892		4,640		1,775,000		0.56
Similar borrowings:
Collateral for structured financings*		2,030		–		2,030		8.11
	$	13,483,572	$	30,933	$	12,806,843		0.38
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges								0.58

* The maturity of structured financings is directly affected by prepayments on the related mortgage pass-through securities pledged as collateral.  Additionally, these financings are subject to redemption by the residual bondholders.

Schedule of Average Borrowings Outstanding

Average borrowings outstanding differed from respective quarter-end balances during the indicated periods primarily due to changes in portfolio levels and differences in the timing of portfolio acquisitions relative to portfolio runoff as illustrated below (dollars in thousands):

	Quarter Ended
	June 30, 2015						December 31, 2014
	Average Borrowings			Average Rate			Average Borrowings			Average Rate
Average borrowings and rates adjusted for the effects of related Derivatives held as cash flow hedges for the indicated quarters		$	13,029,887		0.62	%		$	12,843,636		0.56	%