INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

NOTE 7 - INVESTMENT SECURITIES

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

	March 31, 2015		December 31, 2014
Available-for-sale securities	$	9,519	$	9,065
Trading securities	266		475
Total investment securities, at fair value	$	9,785	$	9,540

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
March 31, 2015
CLO securities	$	7,445	$	1,226	$	(224	)	$	8,447
Equity securities	888		184		—			1,072
Total	$	8,333	$	1,410	$	(224	)	$	9,519
December 31, 2014
CLO securities	$	6,962	$	1,228	$	(176	)	$	8,014
Equity securities	888		163		—			1,051
Total	$	7,850	$	1,391	$	(176	)	$	9,065

CLO securities.  The CLO securities represent the Company’s retained equity interests in 13 and 12 CLO issuers that CVC Credit Partners has sponsored and manages at March 31, 2015 and December 31, 2014, respectively (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 approximately 10,808 shares of DIF with a cost basis of $109,000. In 2014, the Company purchased 749,976 units of RREGPS for $677,400.

Trading securities. The Company had net realized losses on trading securities of $15,000 and net realized gains of $117,000 during the three months ended March 31, 2015 and 2014 respectively, and unrealized gains of $20,000 and unrealized losses of $71,000, respectively, which were included in Financial Fund Management Revenues on the consolidated statements of operations.

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
March 31, 2015
CLO securities	$	3,154	$	(224	)	5	$	—	$	—	—
Equity securities			—			—	—		—		—
Total	$	3,154	$	(224	)	5	$	—	$	—	—
December 31, 2014
CLO securities	$	2,643	$	(176	)	4	$	—	$	—	—
Equity securities	—		—			—	—		—		—
Total	$	2,643	$	(176	)	4	$	—	$	—	—