Note 8 - Financial Instruments

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

8. FINANCIAL INSTRUMENTS

Investments—Trading

Investments-trading consisted of the following.

INVESTMENTS - TRADING
(Dollars in Thousands)

		December 31, 2025				December 31, 2024
Corporate bonds and redeemable preferred stock		$	18,449			$	27,043
Derivatives			4,651				4,836
Equity securities			10,424				965
Foreign government bond			-				88
Municipal bonds			3,813				19,914
RMBS			3				5
SBA loans			43,090				28,328
U.S. government agency MBS and CMOs			42,471				45,911
U.S. government agency debt securities			17,675				21,242
Investments-trading		$	140,576			$	148,332

Substantially all of the Company's investments-trading other than SBA loans serve as collateral for the Company's margin loan payable. See note 6. The SBA loans serve as collateral for the Company's repurchase obligations. See note 11.

Trading Securities Sold, Not Yet Purchased

Trading securities sold, not yet purchased consisted of the following.

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

		December 31, 2025				December 31, 2024
Corporate bonds and redeemable preferred stock		$	8,107			$	7,342
Derivatives			4,245				4,050
Equity securities			463				83
U.S. government agency debt securities			-				40
U.S. Treasury securities			23,802				24,917
Trading securities sold, not yet purchased		$	36,617			$	36,432

The Company manages 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. See note 5 for realized and unrealized gains recognized on investments-trading and trading securities sold, not yet purchased.

Other Investments, at Fair Value

Other investments, at fair value consisted of the following.

OTHER INVESTMENTS, AT FAIR VALUE
(Dollars in Thousands)

		December 31, 2025				December 31, 2024
Equity securities		$	21,457			$	11,072
Placement units and warrants			19,997				1,587
Corporate bonds			535				531
Notes receivable			2,783				11,250
Interests in SPVs			-				1,565
CK Capital Value Fund			1,171				-
CREO JV			8,940				6,432
U.S. Insurance JV			2,375				2,825
Other investments, at fair value		$	57,258			$	35,262

As of December 31, 2025, there were no share forward arrangements (“SFAs”) entered into by the Company. As of December 31, 2024, $470 of equity securities represented long positions related to SFAs entered into by the Company.

Notes receivable include convertible and non-convertible notes receivable from various counterparties in connection with the Company's advisory business and SFAs that may be convertible into equity shares. These receivables are carried at fair value.

Interests in SPVs represents interests the Company has received in SPVs as consideration for services provided by CCM, rather than cash. The SPVs hold convertible notes receivable interests in the counterparties. The Company does not consolidate the SPVs and carries its interests in the SPVs at fair value. See note 9 for discussion of the determination of fair value.

A total of $2,439 and $1,721 of the amounts shown in other investments, at fair value above serve as collateral for the Company's margin loan payable for the years ended December 31, 2025 and 2024, respectively. See note 6.

Other Investments Sold, Not Yet Purchased

OTHER INVESTMENTS SOLD, NOT YET PURCHASED
(Dollars in Thousands)

		December 31, 2025				December 31, 2024
Equity securities		$	-			$	1,181
Equity derivatives			-				470
Other investments sold, not yet purchased		$	-			$	1,651