6. FINANCIAL INSTRUMENTS

Investments—Trading

The following table provides detail of the investments classified as investments-trading as of the periods indicated:



INVESTMENTS - TRADING
(Dollars in Thousands)

	September 30, 2013		December 31, 2012
U.S. government agency MBS and CMOs (1)	$	9,063	$	34,592
U.S. government agency debt securities		3,517		21,066
RMBS		2,935		583
CMBS		300		12
U.S. Treasury securities		182		147
Interests in securitizations (2)		344		352
SBA loans		29,272		15,705
Corporate bonds and redeemable preferred stock		27,241		56,022
Foreign government bonds		111		448
Municipal bonds		9,169		37,745
Exchange traded funds		6		-
Certificates of deposit		3,192		8,934
Equity securities		250		533
Investments-trading	$	85,582	$	176,139

(1)Includes TBAs. See note 8.

(2)Primarily comprised of CDOs, CLOs, and ABS.

Trading Securities Sold, Not Yet Purchased

The following table provides detail of the trading securities sold, not yet purchased as of the periods indicated:



TRADING SECURITIES SOLD, NOT YET PURCHASED
(Dollars in Thousands)

	September 30, 2013		December 31, 2012
U.S. government agency MBS (1)	$	740	$	13
U.S. Treasury securities		33,265		19,722
RMBS		35		-
SBA loans		437		-
Corporate bonds and redeemable preferred stock		12,361		21,976
Foreign government bonds		8		-
Municipal bonds		120		128
Certificates of deposit		6,366		2,325
Equity securities		-		3
Trading securities sold, not yet purchased	$	53,332	$	44,167

(1)Represents TBAs. See note 8.

The Company tries to manage its exposure to changes in interest rates for the interest rate sensitive securities it holds by entering into offsetting short positions for similar fixed rate securities.

The Company included the change in unrealized gains (losses) in the amount of $1,141 and $ (611) for the nine months ended September 30, 2013 and 2012, respectively, in net trading revenue in the Company’s consolidated statements of operations.

Other Investments, at fair value

The following table provides detail of the investments included within other investments, at fair value:



OTHER INVESTMENTS, AT FAIR VALUE
(Dollars in Thousands)

	September 30, 2013
	Cost		Carrying Value		Unrealized Gain(Loss)
Interests in securitizations (1)	$	217	$	37	$	(180)
Equity Securities:
EuroDekania		7,807		2,275		(5,532)
Star Asia		23,304		21,118		(2,186)
Star Asia Special Situations Fund		1,964		3,203		1,239
Tiptree		5,561		2,317		(3,244)
Other securities		176		37		(139)
Total equity securities		38,812		28,950		(9,862)
Residential loans		163		292		129
Foreign currency forward contracts		-		(271)		(271)
Other investments, at fair value	$	39,192	$	29,008	$	(10,184)



	December 31, 2012
	Cost		Carrying Value		Unrealized Gain(Loss)
Interests in securitizations (1)	$	217	$	77	$	(140)
Equity Securities:
EuroDekania		7,807		2,054		(5,753)
Star Asia		23,304		30,169		6,865
Star Asia Special Situations Fund		1,841		2,503		662
Tiptree		5,561		2,834		(2,727)
Other securities		232		431		199
Total equity securities		38,745		37,991		(754)
Residential loans		230		255		25
Other investments, at fair value	$	39,192	$	38,323	$	(869)

(1)Represents an interest in a CDO.