Investments in Credit Securities

6 Months Ended

Jun. 30, 2022

Note 4. Investments in Credit Securities

The Company has elected to classify its investments in credit securities as trading securities. Accordingly, the Company’s investments in credit securities are reported in the accompanying consolidated balance sheets at fair value. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s investments in credit securities was $113,419 and $26,222, respectively. As of June 30, 2022, the Company’s investments in credit securities primarily consist of non-agency MBS collateralized by pools of

business purpose residential mortgage loans or commercial mortgage loans and ABS collateralized by pools of residential solar panel loans.

All periodic changes in the fair value of credit securities that are not attributed to interest income are recognized as a component of “investment and derivative gain (loss), net” in the accompanying consolidated statements of comprehensive income. The following table provides additional information about the gains and losses recognized as a component of “investment and derivative gain (loss), net” in the Company’s consolidated statements of comprehensive income for the periods indicated with respect to investments in credit securities:


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net gains (losses) recognized in earnings for:
Credit securities still held at period end	$	(321	)	$	(186	)	$	(675	)	$	1,210
Credit securities sold during the period		(482	)		(75	)		(970	)		(80	)
Total	$	(803	)	$	(261	)	$	(1,645	)	$	1,130