REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2013

REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS [Abstract]

Schedule of Repurchase Arrangements and Similar Borrowings

Repurchase arrangements and similar borrowings (and related pledged collateral, including accrued interest receivable), classified by collateral type and remaining maturities, and related weighted average borrowing rates as of the indicated date were as follows (dollars in thousands):

Collateral Type	Collateral Carrying Amount		Accrued Interest Receivable		Borrowings Outstanding		Average Borrowing Rates
As of September 30, 2013:
Borrowings with maturities of 30 days or less:
Agency Securities	$	13,246,162	$	28,737	$	12,579,977		0.35	%
Borrowings with maturities greater than 30 days:
Agency Securities (greater than 90 days)		41,598		48		36,299		0.45
Similar borrowings:
Collateral for structured financings*		2,295		–		2,295		8.08
	$	13,290,055	$	28,785	$	12,618,571		0.36
Quarter-end borrowing rates adjusted for effects of related derivative financial instruments (“Derivatives”) held as cash flow hedges (see NOTE 7)								0.47
As of December 31, 2012:
Borrowings with maturities of 30 days or less:
Agency Securities	$	13,406,253	$	32,807	$	12,739,872		0.47	%
Borrowings with maturities greater than 30 days:
Agency Securities (31 to 90 days)		44,060		51		41,520		0.57
Similar borrowings:
Collateral for structured financings*		2,846		–		2,846		8.12
	$	13,453,159	$	32,858	$	12,784,238		0.47
Quarter-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges								0.65

* The maturity of structured financings is directly affected by prepayments on the related mortgage pass-through securities pledged as collateral and these financings are subject to redemption by the residual bondholders.

Schedule of Average Borrowings Outstanding

Average borrowings outstanding during the indicated quarters varied from borrowings outstanding at the indicated balance sheet dates due to differences in the timing and amount of portfolio acquisitions relative to portfolio runoff as illustrated below (dollars in thousands):

	Quarter Ended
	September 30, 2013					December 31, 2012
	Average Borrowings		Average Rate			Average Borrowings		Average Rate
Average borrowings and rates for the indicated quarters, adjusted for the effects of related Derivatives held as cash flow hedges	$	12,862,572		0.49	%	$	13,228,535		0.63	%