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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
NOTE 6 - INVESTMENT SECURITIES
Components of investment securities are as follows (in thousands):
 
December 31,
 
2015
 
2014
Available-for-sale securities
$
19,509

 
$
23,489

Trading securities
1,451

 
475

Trading securities - Pelium
24,712

 
17,419

Total investment securities, at fair value
$
45,672

 
$
41,383


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
As of December 31, 2015:
 
 
 
 
 
 
 
CLO securities
$
7,585

 
$
928

 
$
(66
)
 
$
8,447

Equity securities
12,784

 
12

 
(1,734
)
 
11,062

Total
$
20,369

 
$
940

 
$
(1,800
)
 
$
19,509

 
 
 
 
 
 
 
 
As of December 31, 2014:
 

 
 

 
 

 
 

CLO securities
$
6,962

 
$
1,228

 
$
(176
)
 
$
8,014

Equity securities
11,740

 
3,735

 
—

 
15,475

Total
$
18,702

 
$
4,963

 
$
(176
)
 
$
23,489


CLO securities.  The CLO securities represent the Company’s retained equity interest in 15 and 12 CLO issuers that CVC Credit Partners has sponsored and manages at December 31, 2015 and 2014, respectively (see Note 7).  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. For the year ended December 31, 2015, the Company adjusted its assumptions with respect to the fair value calculations of its CLO securities based on a change in market conditions, principally to increase the constant default rate in year one and two and decrease the prepayment speed in year one, which resulted in an impairment charge of $331,000.
Equity securities.  The Company holds 715,396 shares of RSO common stock and 18,972 shares of TBBK common stock which are pledged as collateral for one of the Company’s secured corporate credit facilities (see Note 11). The Company also holds approximately 10,808 shares in the DIF with a cost basis of $109,000. The Company has an investment of $1.7 million in the CIF. In July 2015, the Company sold its investment in RREGPS (749,976 units) for $677,400, which approximated its fair value.
Trading securities. The Company had net gains on trading securities of $255,000 and $1.7 million during 2015 and 2014, which included unrealized gains of $269,000 and unrealized losses of $342,000 during 2015 and 2014, respectively. The Pelium fund, a consolidated VIE, which holds securities with a fair value of $24.7 million at December 31, 2015 had unrealized losses on trading securities of $2.8 million and unrealized gains of $119,000 during years ending December 31, 2015 and December 31, 2014, respectively. The fund had realized gains of $1.6 million and $450,000 during 2015 and 2014, respectively. At December 31, 2014, the fair value and the cost basis were the same ($17.5 million). The realized and unrealized gains (losses) on trading securities are included in Financial fund management revenues on the consolidated statements of operations.
Unrealized losses along with the 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
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
CLO securities
$
2,033

 
$
(38
)
 
3

 
$
805

 
$
(28
)
 
2

Equity securities
1,814

 
(10
)
 
2

 
9,128

 
(1,724
)
 
1

Total
$
3,847

 
$
(48
)
 
5

 
$
9,933

 
$
(1,752
)
 
3

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
CLO securities
$
2,643

 
$
(176
)
 
4

 
$
—

 
$
—

 
—

Equity securities
—

 
—

 
—

 
—

 
—

 
—

Total
$
2,643

 
$
(176
)
 
4

 
$
—

 
$
—

 
—


The unrealized losses in RSO common stock reflected in the above table are considered to be temporary impairments due to market factors and not reflective of credit deterioration. Further, because of its intent and ability to hold its investment in RSO, the Company does not consider the unrealized losses to be other-than-temporary impairments.
Unrealized losses related to the Pelium fund investments, along with the 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
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
CDO Securities
$
10,156

 
$
(3,312
)
 
18

 
$
1,183

 
$
(503
)
 
7

CMBS
2,940

 
(1,278
)
 
5

 
—

 
—

 
—

Other
2,857

 
(143
)
 
2

 
—

 
—

 
—

Total
$
15,953

 
$
(4,733
)
 
25

 
$
1,183

 
$
(503
)
 
7

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
CDO Securities
$
12,009

 
$
(874
)
 
19

 
$
—

 
$
—

 
—

Commercial Mortgage Backed Securities
—

 
—

 
—

 
—

 
—

 
—

Other
53

 
(29
)
 
1

 
—

 
—

 
—

Total
$
12,062

 
$
(903
)
 
20

 
$
—

 
$
—

 
—


Other-than-temporary impairment losses.  In 2015, 2014 and 2013, the Company recorded charges of $331,000, $0 and $214,000, respectively, for the other-than-temporary impairment of certain of its investments in CLOs, primarily those with investments in bank loans.