SECURED BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2015

Secured 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
September 30, 2015
Borrowings under repurchase arrangements with maturities of 30 days or less:
Agency Securities	$	9,177,537	$	18,477	$	8,754,427		0.45	%
Borrowings under repurchase arrangements with maturities greater than 30 days:
Agency Securities (greater than 90 days)		1,796,490		4,106		1,696,177		0.70
Similar borrowings:
Collateral for structured financings*		1,919		–		1,919		8.11
		10,975,946		22,583		10,452,523
FHLB advances		2,356,083		6,574		2,300,000		0.42
	$	13,332,029	$	29,157	$	12,752,523		0.48
Quarter-end borrowing rates adjusted for effects of related derivative financial instruments (“Derivatives”) held as cash flow hedges (see NOTE 6)								0.72

December 31, 2014
Borrowings under repurchase arrangements with maturities of 30 days or less:
Agency Securities	$	10,401,080	$	24,045	$	9,878,889		0.35
Borrowings under repurchase arrangements 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 secured 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
	September 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	$	13,009,877		0.69	%	$	12,843,636		0.56	%