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Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating activities    
Net income $ 158,448 $ 134,766
Adjustments to reconcile net income to net cash provided by operating activities:    
Net amortization of premium related to mortgage-backed securities 65,475 30,610
Amortization related to interest rate swap agreements 184 151
Share based compensation expense 854 401
Hedge ineffectiveness 338 386
Net gain on sale of mortgage-backed securities (14,710) (4,405)
Changes in operating assets and liabilities:    
Increase in accrued interest receivable (10,831) (22,529)
Increase in other assets (578) (1,200)
Decrease in accrued interest payable (203) (606)
(Decrease) increase in accounts payable and other liabilities (379) 125
Net cash provided by operating activities 198,598 137,699
Investing activities    
Purchases of mortgage-backed securities (8,959,135) (8,394,241)
Principal repayments of mortgage-backed securities 1,938,005 1,267,891
Sale of mortgage-backed securities 2,383,298 360,203
Net cash used in investing activities (4,637,832) (6,766,147)
Net cash used in investing activities    
Issuance of common stock, net of cost of issuance 570,589 817,736
Cash dividends paid (139,030) (104,188)
Increase in restricted cash on swap arrangements (41,164) (84,047)
Proceeds from repurchase agreements 102,306,555 72,246,435
Principal repayments on repurchase agreements (98,316,070) (66,126,901)
Net cash provided by financing activities 4,380,880 6,749,035
Net (decrease) increase in cash and cash equivalents (58,354) 120,587
Cash and cash equivalents, beginning of period 347,045 112,626
Cash and cash equivalents, end of period 288,691 233,213
Supplemental disclosure of cash flow information    
Cash paid during the period for interest 87,481 62,709
Supplemental schedule of non-cash investing activities    
Obligation to brokers for purchase of unsettled mortgage-backed securities 2,160,647 260,415
Supplemental schedule of non-cash financing activities    
Dividends declared, not yet paid $ 88,267 $ 75,092