INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Components of investment securities are as follows (in thousands):

	June 30, 2014		December 31, 2013
Available-for-sale securities	$	8,069	$	7,522
Trading securities	4,521		317
Total investment securities, at fair value	$	12,590	$	7,839

Available-for-sale securities.  The following table discloses the pre-tax unrealized gains (losses) relating to the Company’s investments in available-for-sale securities (in thousands):

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
June 30, 2014
CLO securities	$	5,996	$	1,149	$	(119	)	$	7,026
Equity securities	888		155		—			1,043
Total	$	6,884	$	1,304	$	(119	)	$	8,069
December 31, 2013
CLO securities	$	5,971	$	1,315	$	(196	)	$	7,090
Equity securities	208		232		(8		)	432
Total	$	6,179	$	1,547	$	(204	)	$	7,522

CLO securities.  The CLO securities represent the Company’s retained equity interest in ten CLO issuers that CVC Credit Partners, LLC ("CVC Credit Partners") manages at June 30, 2014 and December 31, 2013 (see Note 8).  The fair value of these retained interests is impacted by the fair value of the investments held by the respective CLO issuers, which are sensitive to interest rate fluctuations and credit quality determinations.

Equity securities.  The Company holds 18,972 shares of TBBK common stock.  This investment is pledged as collateral for one of the Company’s secured corporate credit facilities. The Company also holds 10,000 shares of DIF with a cost basis of $100,000. During the six months ended June 30, 2014, the Company purchased 749,976 units of RREGPS for $677,400.

Trading securities. The Company had net gains on trading securities of $870,000 and $987,000 during the three and six months ended June 30, 2014, respectively, including unrealized losses of $192,000 and unrealized gains of $120,000, respectively, which were included in Financial Fund Management Revenues on the consolidated statements of operations. The Company had net gains on trading securities of $1.2 million and $1.7 million during the three and six months ended June 30, 2013, respectively, including unrealized losses of $262,000 and unrealized gains of $484,000, respectively.

Unrealized losses on available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):

	Less than 12 Months						More than 12 Months
	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities
June 30, 2014
CLO securities	$	660	$	(58	)	1	$	1,058	$	(61	)	1
Equity securities	—		—			—	—		—			—
Total	$	660	$	(58	)	1	$	1,058	$	(61	)	1
December 31, 2013
CLO securities	$	2,312	$	(196	)	3	$	—	$	—		—
Equity securities	92		(8		)	1	—		—			—
Total	$	2,404	$	(204	)	4	$	—	$	—		—

Other-than-temporary impairment losses.  During the three and six months ended June 30, 2014, there were no impairment losses. In the three and six months ended June 30, 2013, the Company recorded charges of $0 and $214,000, respectively, for the other-than-temporary impairment of certain of its investments in bank loan CLOs.