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Valuation (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The tables below reflect the value of the Company's Level 1, Level 2, and Level 3 financial instruments that are measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:
September 30, 2025:
DescriptionLevel 1Level 2Level 3Total
(In thousands)
Assets:
Securities, at fair value:
Agency RMBS$— $211,988 $8,755 $220,743 
Non-Agency RMBS— 148,719 262,571 411,290 
CMBS— 8,944 22,171 31,115 
CLOs— 49,752 32,673 82,425 
Asset-backed securities, backed by consumer loans— — 54,057 54,057 
Other ABS— — 33,523 33,523 
Corporate debt securities— — 14,153 14,153 
Corporate equity securities775 — 10,727 11,502 
U.S. Treasury securities— 51,043 — 51,043 
Loans, at fair value:
Residential mortgage loans— — 3,234,797 3,234,797 
Commercial mortgage loans— — 545,674 545,674 
Consumer loans
— — 208 208 
Corporate loans
— — 18,304 18,304 
Reverse mortgage loans— — 11,732,316 11,732,316 
Forward MSR-related investments, at fair value74,694 74,694 
MSRs, at fair value— — 29,055 29,055 
Loan purchase commitments, at fair value— — 10 10 
Loan commitments, at fair value— — 8,827 8,827 
Investment in unconsolidated entities, at fair value— — 287,686 287,686 
Financial derivatives–assets, at fair value:
Credit default swaps on asset-backed indices— 2,033 — 2,033 
Credit default swaps on corporate bond indices— 13,412 — 13,412 
Interest rate swaps— 129,663 — 129,663 
TBAs— 605 — 605 
Futures1,810 — — 1,810 
Forwards— 55 — 55 
Total return swaps— — 13 13 
Options3,563 — — 3,563 
Warrants— 1 — 1 
Total assets
$6,148 $616,215 $16,370,214 $16,992,577 
DescriptionLevel 1Level 2Level 3Total
(continued)(In thousands)
Liabilities:
Securities sold short, at fair value:
Government debt$— $(234,046)$— $(234,046)
Financial derivatives–liabilities, at fair value:
Credit default swaps on asset-backed securities— — (3)(3)
Credit default swaps on corporate bonds— (177)— (177)
Credit default swaps on corporate bond indices— (26,979)— (26,979)
Interest rate swaps— (31,677)— (31,677)
TBAs— (1,921)— (1,921)
Futures(6)— — (6)
Other secured borrowings, at fair value
— — (2,213,994)(2,213,994)
HMBS-related obligations, at fair value— — (10,117,649)(10,117,649)
Unsecured borrowings, at fair value— — (251,927)(251,927)
Total liabilities
$(6)$(294,800)$(12,583,573)$(12,878,379)
December 31, 2024:
DescriptionLevel 1Level 2Level 3Total
(In thousands)
Assets:
Securities, at fair value:
Agency RMBS$— $286,057 $10,660 $296,717 
Non-Agency RMBS— 56,455 153,188 209,643 
CMBS— 17,807 21,399 39,206 
CLOs— 44,740 22,678 67,418 
Asset-backed securities, backed by consumer loans— — 60,227 60,227 
Other ABS— — 35,483 35,483 
Corporate debt securities— — 14,352 14,352 
Corporate equity securities2,926 — 9,759 12,685 
U.S. Treasury securities— 226,523 — 226,523 
Loans, at fair value:
Residential mortgage loans— — 3,539,534 3,539,534 
Commercial mortgage loans— — 350,515 350,515 
Consumer loans
— — 477 477 
Corporate loans
— — 11,767 11,767 
Reverse mortgage loans— — 10,097,279 10,097,279 
Forward MSR-related investments, at fair value— — 77,848 77,848 
MSRs, at fair value— — 29,766 29,766 
Loan commitments, at fair value— — 6,692 6,692 
Investment in unconsolidated entities, at fair value— — 220,078 220,078 
DescriptionLevel 1Level 2Level 3Total
(continued)(In thousands)
Financial derivatives–assets, at fair value:
Credit default swaps on asset-backed indices— 1,825 — 1,825 
Credit default swaps on corporate bonds— 83 — 83 
Interest rate swaps— 175,450 — 175,450 
TBAs— 2,381 — 2,381 
Warrants— 9 — 9 
Futures900 — — 900 
Forwards— 320 — 320 
Options3,427 — — 3,427 
Total assets
$7,253 $811,650 $14,661,702 $15,480,605 
Liabilities:
Securities sold short, at fair value:
Government debt
$— $(293,574)$— $(293,574)
Financial derivatives–liabilities, at fair value:
Credit default swaps on asset-backed securities— — (3)(3)
Credit default swaps on corporate bonds— (225)— (225)
Credit default swaps on corporate bond indices— (33,207)— (33,207)
Interest rate swaps— (35,039)— (35,039)
TBAs— (2,417)— (2,417)
Futures(130)— — (130)
Forwards— (3)— (3)
Loan purchase commitments, at fair value— — (1,602)(1,602)
Other secured borrowings, at fair value
— — (1,934,309)(1,934,309)
HMBS-related obligations, at fair value— — (9,150,883)(9,150,883)
Unsecured borrowings, at fair value— — (281,912)(281,912)
Total liabilities
$(130)$(364,465)$(11,368,709)$(11,733,304)
Schedule of Significant Unobservable Inputs, Qualitative Information
The following table identifies the significant unobservable inputs that affect the valuation of the Company's Level 3 assets and liabilities as of September 30, 2025:
September 30, 2025:
Fair ValueValuation 
Technique		Unobservable InputRangeWeighted
Average
DescriptionMinMax
(In thousands)
Non-Agency RMBS
$106,907 Market QuotesNon Binding Third-Party Valuation$0.41 $179.16 $65.61 
155,664 Discounted Cash Flows
262,571 Yield1.1 %93.2 %11.7 %
Projected Collateral Prepayments0.0 %96.0 %82.1 %
Projected Collateral Losses0.0 %5.5 %4.5 %
Projected Collateral Recoveries0.0 %2.0 %0.1 %
Non-Agency CMBS16,195 Market QuotesNon Binding Third-Party Valuation$5.88 $97.27 $62.48 
5,976 Discounted Cash Flows
22,171 Yield5.6 %22.3 %11.4 %
Projected Collateral Losses0.0 %97.0 %5.1 %
Projected Collateral Recoveries3.0 %100.0 %93.9 %
CLOs
19,851 Market QuotesNon Binding Third-Party Valuation$20.35 $99.85 $83.35 
12,822 Discounted Cash Flows
32,673 Yield7.5 %75.2 %14.4 %
Agency interest only RMBS
1,640 Market QuotesNon Binding Third-Party Valuation$1.81 $17.41 $3.80 
7,115 Option Adjusted Spread ("OAS")
8,755 
SOFR OAS(1)
179 3,261 606 
Projected Collateral Prepayments18.7 %84.4 %48.6 %
ABS23,978 Market QuotesNon Binding Third-Party Valuation$4.27 $97.00 $35.48 
63,602 Discounted Cash Flows
87,580 Yield4.6 %24.0 %10.5 %
Projected Collateral Prepayments0.0 %89.1 %25.7 %
Projected Collateral Losses0.0 %36.7 %18.5 %
Corporate debt and equity
24,880 Discounted Cash FlowsYield0.0 %113.7 %18.9 %
Performing and re-performing residential mortgage loans
1,636,912 Discounted Cash FlowsYield1.8 %57.8 %6.8 %
Securitized residential mortgage loans(2)(3)
1,337,780 Market QuotesNon Binding Third-Party Valuation$0.50 $103.23 $89.35 
77,659 Discounted Cash Flows
1,415,439 Yield0.3 %17.0 %4.9 %
Non-performing residential mortgage loans
182,446 Discounted Cash FlowsYield0.0 %101.4 %9.6 %
Recovery Amount— %223.6 %92.1 %
Months to Resolution/Maturity4.4 105.9 20.5 
Performing commercial mortgage loans484,948 Discounted Cash FlowsYield8.3 %11.2 %9.8 %
Non-performing commercial mortgage loans
60,726 Discounted Cash FlowsYield9.8 %13.4 %11.2 %
Recovery Amount80.0 %100.0 %99.3 %
Months to Resolution2.015.04.7
Fair ValueValuation 
Technique		Unobservable InputRangeWeighted
Average
DescriptionMinMax
(continued)(In thousands)
Consumer loans
208 Discounted Cash FlowsYield9.0 %13.7 %12.0 %
Projected Collateral Prepayments— %20.9 %9.1 %
Projected Collateral Losses0.7 %95.0 %22.3 %
Corporate loans
18,304 Discounted Cash FlowsYield6.9 %34.0 %15.6 %
Reverse Mortgage Loans—HECM10,333,607 Discounted Cash FlowsYield2.7 %6.2 %4.2 %
Conditional Prepayment Rate2.0 %39.5 %7.6 %
Reverse Mortgage Loans—HECM buyouts36,915 Discounted Cash FlowsYield7.7 %11.4 %9.7 %
Months to Resolution0.360.018.1
Reverse Mortgage Loans—Unsecuritized Proprietary408,626 Discounted Cash FlowsYield6.0 %8.3 %7.0 %
Conditional Prepayment Rate11.9 %41.4 %14.2 %
Reverse Mortgage Loans—Securitized Proprietary(2)
953,169 Market QuotesNon Binding Third-Party Valuation$90.85 $115.41 $111.19 
Yield5.2 %7.5 %5.7 %
Forward MSR-related investments74,694 Discounted Cash FlowsYield9.2 %9.2 %9.2 %
Conditional Prepayment Rate5.0 %5.0 %5.0 %
MSRs29,055 Discounted Cash FlowsYield17.4 %17.4 %17.4 %
Conditional Prepayment Rate10.2 %55.7 %15.3 %
Loan Purchase Commitments10 Transaction PriceYield6.4 %6.6 %6.6 %
Loan Commitments8,827 Discounted Cash FlowsPull-through rate60.0 %92.2 %64.6 %
Cost to originate4.0 %10.4 %4.8 %
Investment in unconsolidated entities—Loan origination and mortgage-related entities67,943 Enterprise Value
Equity Price-to-Book(4)
0.5x2.0x 1.8x
Investment in unconsolidated entities—Other218,243 Enterprise ValueNet Asset Valuen/an/an/a
Investment in unconsolidated entities—Loan origination-related entities1,500 Recent TransactionsTransaction Pricen/an/an/a
287,686 
Total return swaps13 Discounted Cash FlowsYield19.5 %19.5 %19.5 %
Credit default swaps on asset-backed securities(3)Net Discounted Cash FlowsProjected Collateral Prepayments22.9 %22.9 %22.9 %
Projected Collateral Losses8.6 %8.6 %8.6 %
Projected Collateral Recoveries12.3 %12.3 %12.3 %
Other secured borrowings, at fair value(2)
(2,213,994)Market QuotesNon Binding Third-Party Valuation$0.50 $102.78 $93.07 
Yield5.2%8.6%6.0%
Projected Collateral Prepayments12.5%100.0%86.8%
HMBS-related obligations, at fair value(10,117,649)Discounted Cash FlowsYield2.6%6.1%4.0%
Conditional Prepayment Rate6.8%39.5%7.6%
Unsecured borrowings, at fair value(251,927)Market QuotesNon Binding Third-Party Valuation$81.50 $97.04 $95.95 
(1)Shown in basis points.
(2)Securitized residential mortgage loans, Reverse Mortgage Loans—Securitized Proprietary, and Other secured borrowings, at fair value, represent financial assets and liabilities of the Company's CFEs as discussed in Note 2.
(3)Includes $49.4 million of non-performing securitized residential mortgage loans.
(4)Represents an estimation of where market participants might value an enterprise on a price-to-book basis. For the range minimum, the range maximum, and the weighted average price-to-book ratio, excludes investments in unconsolidated entities with a total fair value of $0.6 million. Including such investments, the weighted average price-to-book ratio was 1.8x
Fair Value Measurement Using Significant Unobservable Inputs
The tables below include roll-forwards of the Company's financial instruments for the three- and nine-month periods ended September 30, 2025 and 2024 (including the change in fair value), for financial instruments classified by the Company within Level 3 of the valuation hierarchy.
Three-Month Period Ended September 30, 2025
(In thousands)Beginning Balance as of 
June 30, 2025		Accreted
Discounts /
(Amortized
Premiums)		Net Realized
Gain/
(Loss)		Change in Net
Unrealized
Gain/(Loss)
Purchases/Payments(1)
 Sales/
Issuances(2)
Transfers Into Level 3Transfers Out of Level 3Ending
Balance as of 
September 30, 2025
Assets:
Securities, at fair value:
Agency RMBS$8,883 $(438)$(5)$138 $158 $— $555 $(536)$8,755 
Non-Agency RMBS258,932 (11,944)690 (5,181)63,690 (18,762)6,129 (30,983)262,571 
CMBS21,615 456 99 256 — (1,592)1,337 — 22,171 
CLOs20,794 (857)428 (834)33,281 (20,139)— — 32,673 
Asset-backed securities backed by consumer loans55,186 (1,722)(1,042)389 5,670 (4,424)— — 54,057 
Other ABS21,999 (1,277)3,621 (586)14,555 (4,789)— — 33,523 
Corporate debt securities13,607 — (261)(519)2,898 (1,572)— — 14,153 
Corporate equity securities9,039 — — 756 932 — — — 10,727 
Loans, at fair value:
Residential mortgage loans3,107,555 1,299 7,609 10,845 1,309,295 (1,201,806)— — 3,234,797 
Commercial mortgage loans435,222 (49)— 79 134,943 (24,521)— — 545,674 
Consumer loans271 (20)26 (18)11 (62)— — 208 
Corporate loans19,709 — — (11)74,090 (75,484)— — 18,304 
Reverse mortgage loans(3)
11,105,608 (179)— 223,787 634,152 (231,052)— — 11,732,316 
Forward MSR-related investments, at fair value81,256 2,622 — (2,160)— (7,024)— — 74,694 
MSRs, at fair value(3)
29,276 — — (221)— — — — 29,055 
Loan commitments, at fair value8,785 — — 42 — — — — 8,827 
Loan purchase commitments, at fair value4,064 — — (4,054)— — — — 10 
Investments in unconsolidated entities, at fair value307,722 — 3,570 9,504 168,684 (201,794)— — 287,686 
Financial derivatives–assets, at fair value:
Total return swaps— — — 13 — — — — 13 
Total assets, at fair value$15,509,523 $(12,109)$14,735 $232,225 $2,442,359 $(1,793,021)$8,021 $(31,519)$16,370,214 
Liabilities:
Financial derivatives–liabilities, at fair value:
Credit default swaps on asset-backed securities$(3)$— $1 $— $— $(1)$— $— $(3)
Other secured borrowings, at fair value(2,127,225)(1,808)— (13,969)49,807 (120,799)— — (2,213,994)
Unsecured borrowings, at fair value(249,036)— — (2,891)— — — — (251,927)
HMBS-related obligations, at fair value(9,814,811)— — (171,019)232,526 (364,345)— — (10,117,649)
Total liabilities, at fair value$(12,191,075)$(1,808)$1 $(187,879)$282,333 $(485,145)$— $— $(12,583,573)
(1)For Investments in unconsolidated entities, at fair value, amount represents contributions to investments in unconsolidated entities.
(2)For Investments in unconsolidated entities, at fair value and Forward MSR-related investments, at fair value, amount represents distributions received.
(3)Change in net unrealized gain (loss) represents the net change in fair value which can include interest income and realized and unrealized gains and losses.
Three-Month Period Ended September 30, 2024
(In thousands)Beginning Balance as of 
June 30, 2024		Accreted
Discounts /
(Amortized
Premiums)		Net Realized
Gain/
(Loss)		Change in Net
Unrealized
Gain/(Loss)
Purchases/Payments(1)
 Sales/
Issuances(2)
Transfers Into Level 3Transfers Out of Level 3Ending
Balance as of 
September 30, 2024
Assets:
Securities, at fair value:
Agency RMBS$7,482 $(317)$91 $586 $4,656 $(983)$277 $(256)$11,536 
Non-Agency RMBS84,811 (1,130)(326)3,428 29,207 (19,579)918 (9,452)87,877 
CMBS18,245 197 157 406 — (3,483)6,111 (2,240)19,393 
CLOs35,697 (1,513)363 (193)— (8,611)2,103 (1,942)25,904 
Asset-backed securities backed by consumer loans68,924 (1,304)(5,469)2,869 7,113 (6,422)— — 65,711 
Other ABS31,196 (178)— 2,291 1,062 (1,884)— — 32,487 
Corporate debt securities15,066 — 637 (1,030)6,232 (7,239)— — 13,666 
Corporate equity securities10,162 — — (98)156 — — — 10,220 
Loans, at fair value:
Residential mortgage loans3,101,615 (218)(7,250)83,967 867,769 (427,650)— — 3,618,233 
Commercial mortgage loans266,220 31 — (1,775)52,597 (23,811)— — 293,262 
Consumer loans949 (51)(9)(4)13 (228)— — 670 
Corporate loans4,933 — — (1,188)100 (100)— — 3,745 
Reverse mortgage loans(3)
9,472,389 — (19)180,728 478,484 (527,706)— — 9,603,876 
Forward MSR-related investments, at fair value158,031 4,041 — (4,521)— (7,720)— — 149,831 
MSRs, at fair value(3)
29,538 — — (661)— — — — 28,877 
Loan commitments, at fair value5,623 — — 332 — — — — 5,955 
Loan purchase commitments, at fair value275 — — 1,073 — — — — 1,348 
Investments in unconsolidated entities, at fair value163,182 — — 7,281 56,785 (38,773)— — 188,475 
Financial derivatives–assets, at fair value:
Credit default swaps on asset-backed securities8 — — (2)— — — — 6 
Total return swaps3 — (4)(3)5 (1)— — — 
Total assets, at fair value$13,474,349 $(442)$(11,829)$273,486 $1,504,179 $(1,074,190)$9,409 $(13,890)$14,161,072 
Liabilities:
Servicing liability, at fair value$(232)$— $590 $(358)$— $— $— $— $— 
Other secured borrowings, at fair value(1,585,838)(2,890)— (59,288)41,442 (207,181)— — (1,813,755)
Unsecured borrowings, at fair value(269,069)— — (9,059)— — — — (278,128)
HMBS-related obligations, at fair value(8,832,058)— — (133,837)527,944 (352,638)— — (8,790,589)
Total liabilities, at fair value$(10,687,197)$(2,890)$590 $(202,542)$569,386 $(559,819)$— $— $(10,882,472)
(1)For Investments in unconsolidated entities, at fair value, amount represents contributions to investments in unconsolidated entities.
(2)For Investments in unconsolidated entities, at fair value, amount represents distributions from investments in unconsolidated entities.
(3)Change in net unrealized gain (loss) represents the net change in fair value which can include interest income and realized and unrealized gains and losses.
Nine-Month Period Ended September 30, 2025
(In thousands)Beginning Balance as of 
December 31, 2024		Accreted
Discounts /
(Amortized
Premiums)		Net Realized
Gain/
(Loss)		Change in Net
Unrealized
Gain/(Loss)
Purchases/Payments(1)
 Sales/
Issuances(2)
Transfers Into Level 3Transfers Out of Level 3Ending
Balance as of 
September 30, 2025
Assets:
Securities, at fair value:
Agency RMBS$10,660 $(1,130)$(16)$690 $1,161 $(848)$2,151 $(3,913)$8,755 
Non-Agency RMBS153,188 (31,114)2,386 2,278 207,501 (52,511)13,148 (32,305)262,571 
CMBS21,399 903 (389)108 — (4,169)9,761 (5,442)22,171 
CLOs22,678 (3,156)574 (2,520)44,405 (29,308)— — 32,673 
Asset-backed securities backed by consumer loans60,227 (5,193)(5,498)1,365 19,294 (16,138)— — 54,057 
Other ABS35,483 (1,280)6,936 (2,584)16,603 (21,635)— — 33,523 
Corporate debt securities14,352 — (3)(1,015)9,162 (8,343)— — 14,153 
Corporate equity securities9,759 — (348)1,445 1,953 (2,082)— — 10,727 
Loans, at fair value:
Residential mortgage loans3,539,534 767 18,893 54,683 3,225,311 (3,604,391)— — 3,234,797 
Commercial mortgage loans350,515 — (9,699)11,803 290,452 (97,397)— — 545,674 
Consumer loans477 (100)52 (41)28 (208)— — 208 
Corporate loans11,767 — (1,644)1,740 142,179 (135,738)— — 18,304 
Reverse mortgage loans(3)
10,097,279 (312)— 613,060 1,659,036 (636,747)— — 11,732,316 
Forward MSR-related investments, at fair value77,848 8,203 — 9,836 — (21,193)— — 74,694 
MSRs, at fair value(3)
29,766 — — (711)— — — — 29,055 
Loan commitments, at fair value6,692 — — 2,135 — — — — 8,827 
Loan purchase commitments, at fair value— — — 10 — — — — 10 
Investments in unconsolidated entities, at fair value220,078 — 1,189 37,260 409,762 (380,603)— — 287,686 
Financial derivatives–assets, at fair value:
Total return swaps— — — 13 — — — — 13 
Total assets, at fair value$14,661,702 $(32,412)$12,433 $729,555 $6,026,847 $(5,011,311)$25,060 $(41,660)$16,370,214 
Liabilities:
Financial derivatives–liabilities, at fair value:
Credit default swaps on asset-backed securities$(3)$— $1 $— $— $(1)$— $— $(3)
Loan purchase commitments, at fair value(1,602)— — 1,602 — — — — — 
Other secured borrowings, at fair value(1,934,309)(5,101)— (75,298)144,167 (343,453)— — (2,213,994)
Unsecured borrowings, at fair value(281,912)— (1,383)(3,563)34,931 — — — (251,927)
HMBS-related obligations, at fair value(9,150,883)— — (460,701)635,823 (1,141,888)— — (10,117,649)
Total liabilities, at fair value$(11,368,709)$(5,101)$(1,382)$(537,960)$814,921 $(1,485,342)$— $— $(12,583,573)
(1)For Investments in unconsolidated entities, at fair value, amount represents contributions to investments in unconsolidated entities.
(2)For Investments in unconsolidated entities, at fair value and Forward MSR-related investments, at fair value, amount represents distributions received.
(3)Change in net unrealized gain (loss) represents the net change in fair value which can include interest income and realized and unrealized gains and losses.
Nine-Month Period Ended September 30, 2024
(In thousands)Beginning Balance as of 
December 31, 2023		Accreted
Discounts /
(Amortized
Premiums)		Net Realized
Gain/
(Loss)		Change in Net
Unrealized
Gain/(Loss)
Purchases/Payments(1)
Sales/Issuances(2)
Transfers Into Level 3Transfers Out of Level 3Ending
Balance as of 
September 30, 2024
Assets:
Securities, at fair value:
Agency RMBS$5,512 $(688)$59 $207 $5,564 $(1,114)$2,935 $(939)$11,536 
Non-Agency RMBS155,240 (2,684)(4,186)24,159 51,618 (121,468)2,069 (16,871)87,877 
CMBS14,143 635 294 (190)6,092 (4,580)6,963 (3,964)19,393 
CLOs20,439 (2,189)(3,061)905 69,421 (50,793)3,711 (12,529)25,904 
Asset-backed securities backed by consumer loans74,226 (5,129)(7,734)2,949 23,212 (21,813)— — 65,711 
Other ABS7,696 (23)— 3,936 23,456 (2,578)— — 32,487 
Corporate debt securities8,041 — 160 (350)15,641 (9,826)— — 13,666 
Corporate equity securities12,294 — 549 (605)320 (2,338)— — 10,220 
Loans, at fair value:
Residential mortgage loans3,093,912 (2,042)(12,716)104,743 2,063,012 (1,628,676)— — 3,618,233 
Commercial mortgage loans266,595 31 (44)43 268,006 (241,369)— — 293,262 
Consumer loans1,759 (286)17 (1)153 (972)— — 670 
Corporate loans5,819 — — (1,288)828 (1,614)— — 3,745 
Reverse mortgage loans(3)
8,938,551 — (19)532,180 1,217,247 (1,084,083)— — 9,603,876 
Forward MSR-related investments, at fair value163,336 11,285 — (1,579)— (23,211)— — 149,831 
MSRs, at fair value(3)
29,580 — — (703)— — — — 28,877 
Servicing asset, at fair value1,327 — 590 (1,917)— — — — — 
Loan commitments, at fair value2,584 — — 3,371 — — — — 5,955 
Loan purchase commitments, at fair value— — — 1,348 — — — — 1,348 
Investments in unconsolidated entities, at fair value116,414 — 7,948 13,601 244,116 (193,604)— — 188,475 
Financial derivatives–assets, at fair value:
Credit default swaps on asset-backed securities8 — (1)(2)1 — — — 6 
Total return swaps6 — 33 (6)6 (39)— — — 
Total assets, at fair value$12,917,482 $(1,090)$(18,111)$680,801 $3,988,693 $(3,388,078)$15,678 $(34,303)$14,161,072 
Liabilities:
Other secured borrowings, at fair value(1,424,668)(3,532)— (73,327)115,638 (427,866)— — (1,813,755)
Unsecured borrowings, at fair value(272,765)— — (5,363)— — — — (278,128)
HMBS-related obligations, at fair value(8,423,235)— — (439,491)1,075,499 (1,003,362)— — (8,790,589)
Total liabilities, at fair value$(10,120,668)$(3,532)$— $(518,181)$1,191,137 $(1,431,228)$— $— $(10,882,472)
(1)For Investments in unconsolidated entities, at fair value, amount represents contributions to investments in unconsolidated entities.
(2)For Investments in unconsolidated entities, at fair value, amount represents distributions received.
(3)Change in net unrealized gain (loss) represents the net change in fair value which can include interest income and realized and unrealized gains and losses.
Schedule of Financial Instruments
The following table summarizes the estimated fair value of all other financial instruments not measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
(In thousands)Fair ValueCarrying ValueFair ValueCarrying Value
Other financial instruments
Assets:
Cash and cash equivalents$184,809 $184,809 $192,387 $192,387 
Restricted cash20,769 20,769 16,561 16,561 
Due from brokers40,714 40,714 22,186 22,186 
Reverse repurchase agreements365,716 365,716 336,743 336,743 
Liabilities:
Repurchase agreements2,800,964 2,800,964 2,584,040 2,584,040 
Other secured borrowings189,203 189,203 253,300 253,300 
Due to brokers43,001 43,001 55,429 55,429 
Cash and cash equivalents generally includes cash held in interest bearing overnight accounts, for which fair value equals the carrying value, and investments which are liquid in nature, such as investments in money market accounts or U.S. Treasury Bills, for which fair value equals the carrying value; such assets are considered Level 1. Restricted cash includes cash held in a segregated account for which fair value equals the carrying value; such assets are considered Level 1. Due from brokers and Due to brokers include collateral transferred to or received from counterparties, along with receivables and payables for open and/or closed derivative positions. These receivables and payables are short term in nature and any collateral transferred consists primarily of cash; fair value of these items is approximated by carrying value and such items are considered Level 1. The Company's reverse repurchase agreements, repurchase agreements, and other secured borrowings are carried at cost, which approximates fair value due to their short term nature. Reverse repurchase agreements, repurchase agreements, and other secured borrowings are classified as Level 2 based on the adequacy of the collateral and their short term nature.
Schedule of change in unrealized gain/(loss) on Level 3 Assets and Liabilities still held and outstanding The following table details the change in net unrealized gain (loss) for Level 3 financial instruments still held by the Company at September 30, 2025.
(In thousands)Three-Month Period Ended
September 30, 2025
Securities, at fair value$(3,101)
Loans, at fair value232,291 
Forward MSR-related investments, at fair value(2,160)
MSRs, at fair value(221)
Loan purchase commitments, at fair value(2,334)
Loan commitments, at fair value8,004 
Investments in unconsolidated entities, at fair value
6,073 
Financial derivatives-assets, at fair value13 
Other secured borrowings, at fair value
(13,969)
Unsecured borrowings, at fair value
(2,890)
HMBS-related obligations, at fair value
(171,019)
The following table details the change in net unrealized gain (loss) for Level 3 financial instruments still held by the Company at September 30, 2024.
(In thousands)Three-Month
Period Ended September 30, 2024
Securities, at fair value$6,909 
Loans, at fair value261,765 
Forward MSR-related investments, at fair value(4,521)
MSRs, at fair value(661)
Loan commitments, at fair value332 
Loan purchase commitments, at fair value1,073 
Investments in unconsolidated entities, at fair value
3,854 
Financial derivatives-assets, at fair value
(3)
Other secured borrowings, at fair value
(59,288)
Unsecured borrowings, at fair value
(9,059)
HMBS-related obligations, at fair value
(133,837)
The following table details the change in net unrealized gain (loss) for Level 3 financial instruments still held by the Company at September 30, 2025.
(In thousands)Nine-Month
Period Ended
September 30, 2025
Securities, at fair value$2,591 
Loans, at fair value650,936 
Forward MSR-related investments, at fair value9,836 
MSRs, at fair value(711)
Loan purchase commitments, at fair value10 
Loan commitments, at fair value8,823 
Investments in unconsolidated entities, at fair value
21,816 
Financial derivatives-assets, at fair value13 
Other secured borrowings, at fair value
(75,299)
Unsecured borrowings, at fair value
(4,717)
HMBS-related obligations, at fair value
(460,701)
The following table details the change in net unrealized gain (loss) for Level 3 financial instruments still held by the Company at September 30, 2024.
(In thousands)Nine-Month
Period Ended
September 30, 2024
Securities, at fair value$11,552 
Loans, at fair value635,425 
Forward MSR-related investments, at fair value(1,579)
MSRs, at fair value(703)
Loan purchase commitments, at fair value1,348 
Loan commitments, at fair value3,371 
Investments in unconsolidated entities, at fair value
6,055 
Financial derivatives-assets, at fair value
(2)
Other secured borrowings, at fair value
(73,327)
Unsecured borrowings, at fair value
(5,363)
HMBS-related obligations, at fair value
(439,491)