Borrowings

12 Months Ended

Dec. 31, 2019

We finance the majority of our investment portfolio through repurchase agreements and secured loans. The following tables summarize certain characteristics of our borrowings at December 31, 2019 and 2018. Refer to Note 7 - “Collateral Positions” for collateral pledged and held under our repurchase agreements and secured loans.



$ in thousands	December 31, 2019
	Amount Outstanding	Period-end Weighted Average Interest Rate		Weighted Average Remaining Maturity (Days)
Repurchase Agreements:
Agency RMBS	9,666,964	1.95	%	46
Agency CMBS	4,246,359	1.95	%	43
Non-Agency CMBS	2,041,968	2.71	%	14
Non-Agency RMBS	790,412	2.65	%	16
GSE CRT	753,110	2.70	%	13
Loan Participation Interest	33,490	3.22	%	240
Total Repurchase Agreements	17,532,303	2.11	%	39
Secured Loans	1,650,000	1.93	%	1587
Total Borrowings	19,182,303	2.09	%	172



$ in thousands	December 31, 2018
	Amount Outstanding	Period-end Weighted Average Interest Rate		Weighted Average Remaining Maturity (Days)
Repurchase Agreements:
Agency RMBS	9,529,352	2.56	%	36
Agency CMBS	810,450	2.53	%	31
Non-Agency CMBS	1,616,473	3.56	%	19
Non-Agency RMBS	923,959	3.60	%	26
GSE CRT	681,014	3.48	%	21
Loan Participation Interest	41,236	4.09	%	605
Total Repurchase Agreements	13,602,484	2.80	%	34
Secured Loans	1,650,000	2.68	%	1952
Total Borrowings	15,252,484	2.79	%	242

The following table shows the aggregate amount of maturities of our outstanding borrowings:



	As of
$ in thousands	December 31, 2019
2020	17,832,303
2021	100,000
2022	—
2023	—
2024	—
2025	1,250,000
Total	19,182,303

Repurchase Agreements

Our repurchase agreements generally bear interest at a contractually agreed upon rate and generally have maturities ranging from one month to six months. Our repurchase agreement that is collateralized by a loan participation interest bears interest at a floating rate based on LIBOR plus a spread and matures in August 2020. Repurchase agreements are accounted for as secured borrowings since we maintain effective control of the financed assets. Repurchase agreements are subject to certain financial covenants. We were in compliance with these covenants at December 31, 2019.

Our repurchase agreement collateral ratio (MBS, GSE CRTs and a loan participation interest pledged as collateral/ amount outstanding) was 109% as of December 31, 2019 (December 31, 2018: 111%).

Secured Loans

Our wholly-owned captive insurance subsidiary, IAS Services LLC, is a member of the FHLBI. As a member of the FHLBI, IAS Services LLC has borrowed funds from the FHLBI in the form of secured loans.

As of December 31, 2019, IAS Services LLC, had $1.65 billion in outstanding secured loans from the FHLBI. These secured loans have floating rates that are based on the three-month FHLB swap rate plus a spread. For the year ended December 31, 2019, IAS Services LLC had weighted average borrowings of $1.65 billion with a weighted average borrowing rate of 2.52% and a weighted average maturity of 4.3 years.

The Federal Housing Finance Agency’s (“FHFA”) final rule governing Federal Home Loan Bank membership (the “FHFA Rule”) became effective on February 19, 2016. The FHFA Rule permits existing captive insurance companies, such as IAS Services LLC, to remain members until February 2021. New advances or renewals that mature after February 2021 are prohibited. The FHLBI has indicated it will honor the contractual maturity dates of existing advances to IAS Services LLC. The ability to maintain our existing advances from the FHLBI is subject to our continued creditworthiness, pledging of sufficient eligible collateral to secure advances, and compliance with certain agreements with FHLBI and FHFA rules. We were in compliance with all of the financial provisions of these agreements as of December 31, 2019.

As discussed in Note 5 - “Other Assets,” IAS Services LLC is required to purchase and hold a certain amount of FHLBI stock, which is based, in part, upon the outstanding principal balance of secured loans from the FHLBI.

Exchangeable Senior Notes

During the year ended December 31, 2018, we retired $143.4 million of our Exchangeable Senior Notes (the "Notes") for a repurchase price of $143.4 million and realized a net loss on extinguishment of debt of $26,000. During the year ended December 31, 2017, we retired $256.6 million of the Notes for a repurchase price of $262.1 million and realized a net loss on extinguishment of debt of $6.8 million.