INTEREST INCOME AND INTEREST EXPENSE

6 Months Ended

Jun. 30, 2016

INTEREST INCOME AND INTEREST EXPENSE

12. INTEREST INCOME AND INTEREST EXPENSE

The table below presents the components of the Company’s interest income and interest expense for the quarters and six months ended June 30, 2016 and 2015.

	For the Quarters Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Interest income:	(dollars in thousands)
Residential Investment Securities	$	394,850	$	570,493	$	710,567	$	1,048,732
Commercial investment portfolio(1)		59,578		52,429		129,765		92,765
Reverse repurchase agreements		2,690		1,355		4,929		1,894
Total interest income		457,118		624,277		845,261		1,143,391
Interest expense:
Repurchase agreements		136,176		101,225		269,067		203,973
Convertible Senior Notes		-		6,113		-		29,740
Securitized debt of consolidated VIEs		11,226		5,475		20,259		8,357
Participation sold		157		159		315		318
Other		5,196		100		10,561		104
Total interest expense		152,755		113,072		300,202		242,492
Net interest income	$	304,363	$	511,205	$	545,059	$	900,899
(1) Includes commercial real estate debt, preferred equity and corporate debt.