8. Mortgage-Backed Securities (“MBS Securities”)

At December 31, 2015, the Partnership owned 100% of the LIFERs of TOB Trusts (“MBS Trusts”) sponsored by DB. The MBS Trusts are VIEs and the Partnership is the primary beneficiary. As a result, the Partnership consolidates the assets of the MBS Trusts in the consolidated financial statements. The MBS Securities are backed by residential mortgage loans and interest received is expected to be exempt from federal income taxation.

In January 2016, the Partnership sold its three remaining MBS Securities for approximately $15.0 million, which approximated the amortized cost plus interest. The Partnership then collapsed the related three remaining MBS Trusts and paid all obligations in full from the proceeds of the sales.

The carrying value of the Partnership’s MBS Securities as of December 31, 2016, was zero. The carrying values of the Partnerships MBS Securities at December 31, 2015 are as follows:

	December 31, 2015
Agency Rating of MBS Securities ⁽¹⁾	Cost adjusted for amortization of premium		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
“AAA”	$	5,052,348	$	-	$	(34,648	)	$	5,017,700
“AA”		9,900,682		-		(143,073	)		9,757,609
	$	14,953,030	$	-	$	(177,721	)	$	14,775,309

⁽¹⁾ MBS Securities are reported based on the lowest rating issued by a Rating Agency, if more than one rating is issued on the security, at the date presented.

See Note 25 for a description of the methodology and significant assumptions for determining the fair value of the MBS Securities. Unrealized gains or losses on the MBS Securities are recorded in the consolidated statements of comprehensive income (loss) to reflect changes in their estimated fair values resulting from market conditions and fluctuations in the present value of the expected cash flows from the MBS Securities.

A description of certain terms of the Partnership’s MBS Securities at December 31, 2015 is as follows:

Agency Rating of MBS Securities	Principal Outstanding December 31, 2015		Weighted Average Maturity Date	Weighted Average Coupon Interest Rate
“AAA”	$	5,000,000	7/1/2032		4.60	%
“AA”		9,765,000	7/9/2036		4.20	%
	$	14,765,000