XML 27 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Note 5 - Net Trading
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Trading Activities [Text Block]
5.
NET TRADING
 
 
Net trading consisted of the following in the periods presented.

NET TRADING
(Dollars in Thousands)
 
   
For the Year Ended December 31,
  
   
2020
    
2019
    
2018
  
Net realized gains / (losses)- trading inventory   $
31,269
     $
24,118
     $
20,914
  
Net unrealized gains / (losses)-trading inventory    
2,076
      
(1,320
 )    
1,236
  
Gains and losses
    
33,345
      
22,798
      
22,150
  
                         
Interest income-trading inventory    
7,759
      
6,921
      
5,040
  
Interest income - RTLs    
-
      
236
      
-
  
Interest income-receivables under resale agreements    
98,710
      
176,336
      
67,846
  
Interest income
    
106,469
      
183,493
      
72,886
  
                         
Interest expense-securities sold under agreement to repurchase    
(65,030
 )    
(164,851
 )    
(63,707
 )
Interest expense-LegacyTexas Credit Facility    
(39
 )    
(100
 )    
-
  
Interest expense-margin payable    
(1,134
 )    
(3,168
 )    
(2,031
 )
Interest expense
    
(66,203
 )    
(168,119
 )    
(65,738
 )
                         
Net trading
   $
73,611
     $
38,172
     $
29,298
  
 
 Trading inventory includes investments classified as investments-trading as well as trading securities sold,
not
yet purchased.
 
During
2019,
RTLs were accounted for at lower of cost or market and included as a component of other assets and the interest income related to those loans was shown separately in the table above.  Effective
January 1, 2020,
in connection with the adoption of ASC
326,
the Company began accounting for RTLs at fair value and included them as a component of investments-trading. Income earned on RTLs in included in interest income-trading inventory in the table above.  In conjunction with the sale of ViaNova, the Company retained
one
loan, a
first
mortgage loan on a residential property and transferred the loan to JVB.  As of
December 31, 2020,
this loan is included in other investments, at fair value on the consolidated balance sheets; subsequent income earned on this loan is included in principal transactions and other income in the consolidated statement of operations.
 
 See note
6
for discussion of margin payable. See note
11
 for discussion of receivables under resale agreements and securities sold under agreements to repurchase.  See note
20
 for discussion of LegacyTexas Credit Facility.