Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

9 Months Ended

Sep. 30, 2019

Investments Debt And Equity Securities [Abstract]

Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

NOTE 5 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The components of financial instruments owned and financial instruments sold, but not yet purchased, at September 30, 2019 and December 31, 2018 are as follows (in thousands):

	September 30, 2019		December 31, 2018
Financial instruments owned:
U.S. government securities	$	24,034	$	42,121
U.S. government agency securities		112,481		72,532
Mortgage-backed securities:
Agency		457,110		564,111
Non-agency		10,205		25,727
Asset-backed securities		36,157		25,905
Corporate securities:
Fixed income securities		333,808		310,457
Equity securities		77,649		57,911
Sovereign debt		1,977		14,063
State and municipal securities		118,671		154,622
Loans		17,800		—
	$	1,189,892	$	1,267,449
Financial instruments sold, but not yet purchased:
U.S. government securities	$	421,418	$	534,817
U.S. government agency securities		—		32,755
Agency mortgage-backed securities		157,903		123,456
Corporate securities:
Fixed income securities		238,245		208,725
Equity securities		78,764		36,117
Sovereign debt		9,467		11,429
State and municipal securities		—		7
	$	905,797	$	947,306

At September 30, 2019 and December 31, 2018, financial instruments owned in the amount of $586.9 million and $669.0 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings. Our financial instruments owned are presented on a trade-date basis in the consolidated statements of financial condition.

Financial instruments sold, but not yet purchased, represent obligations of our company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices in future periods. We are obligated to acquire the securities sold short at prevailing market prices in future periods, which may exceed the amount reflected in the consolidated statements of financial condition.