Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

6 Months Ended

Jun. 30, 2019

Investments Debt And Equity Securities [Abstract]

Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

NOTE 5 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The components of financial instruments owned and financial instruments sold, but not yet purchased, at June 30, 2019 and December 31, 2018 are as follows (in thousands):

	June 30, 2019		December 31, 2018
Financial instruments owned:
U.S. government securities	$	56,478	$	42,121
U.S. government agency securities		130,141		72,532
Mortgage-backed securities:
Agency		545,340		564,111
Non-agency		11,146		25,727
Asset-backed securities		5,220		25,905
Corporate securities:
Fixed income securities		326,407		310,457
Equity securities		82,968		57,911
Sovereign debt		800		14,063
State and municipal securities		193,859		154,622
	$	1,352,359	$	1,267,449
Financial instruments sold, but not yet purchased:
U.S. government securities	$	389,489	$	534,817
U.S. government agency securities		4,011		32,755
Agency mortgage-backed securities		246,028		123,456
Corporate securities:
Fixed income securities		248,962		208,725
Equity securities		66,312		36,117
Sovereign debt		1,542		11,429
State and municipal securities		—		7
	$	956,344	$	947,306

At June 30, 2019 and December 31, 2018, financial instruments owned in the amount of $777.6 million and $669.0 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings. Our financial instruments owned are presented on a trade-date basis in the consolidated statements of financial condition.

Financial instruments sold, but not yet purchased, represent obligations of our company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices in future periods. We are obligated to acquire the securities sold short at prevailing market prices in future periods, which may exceed the amount reflected in the consolidated statements of financial condition.