Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Income

12. Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following components:

	September 30, 2012			December 31, 2011
Unrealized gain on agency securities, net	$	679,019		$	385,101
Unrealized gain (loss) on unsettled securities		1,553			631
Unrealized loss on short term investment*		(109	)		(287	)
Unrealized loss on derivative instruments		(245,239	)		(212,123	)
Accumulated other comprehensive income		435,224			173,322

* This line item is included in Other Assets on the Balance Sheet.

The Company records unrealized gains and losses on its agency securities and swap positions as is described in Notes 4 and 7, respectively. Reclassification adjustment for realized gains and losses on the sale of securities included in unrealized gains and losses on available-for-sale securities at September 30, 2012 and December 31, 2011 was approximately $25,244 and $20,576, respectively.