REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS, INCLUDING RELATED HEDGING ACTIVITY (Tables)

12 Months Ended

Dec. 31, 2012

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 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
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges								0.65
As of December 31, 2011:
Borrowings with maturities of 30 days or less:
Agency Securities	$	11,306,478	$	25,630	$	10,754,835		0.37	%
Borrowings with maturities greater than 30 days:
Agency Securities (31 to 90 days)		619,710		1,551		594,283		0.32
Similar borrowings:
Collateral for structured financings		3,326		—		3,326		8.04
	$	11,929,514	$	27,181	$	11,352,444		0.37
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges								0.58

Schedule Of Average Borrowings Outstanding

Average borrowings outstanding were lower than respective year-end balances primarily due to portfolio growth and differences in the timing of portfolio acquisitions relative to portfolio runoff as illustrated below (dollars in thousands):

	Year Ended
	December 31, 2012					December 31, 2011
	Average Borrowings		Average Rate			Average Borrowings		Average Rate
Average borrowings and rates for the indicated years, adjusted for the effects of related
Derivatives held as cash flow hedges	$	12,442,706		0.56	%	$	10,059,807		0.56	%

Schedule Of Swap Agreements Expiration Period And Characteristics

At December 31, 2012, the Company was a party to swap agreements hedging short-term interest rates with the following characteristics (dollars in thousands):

Period of Contract Expiration	Notional Amount		Average Fixed Rate Payment Requirement
Currently-paying two-year contracts:
First quarter 2013	$	1,100,000		0.81	%
Second quarter 2013		700,000		0.96
Third quarter 2013		300,000		0.87
Fourth quarter 2013		800,000		0.78
First quarter 2014		200,000		0.60
Second quarter 2014		400,000		0.51
Third quarter 2014		200,000		0.51
Fourth quarter 2014		500,000		0.58
(average expiration: 9 months)		4,200,000		0.75
Forward-starting two-year contracts:
First quarter 2015		1,100,000		0.50
Second quarter 2015		200,000		0.43
Third quarter 2015		400,000		0.47
Fourth quarter 2015		700,000		0.43
(average expiration: 29 months)		2,400,000		0.47
(average expiration: 16 months)	$	6,600,000

Impact Of Derivative Instruments On Statements Of Financial Performance And Financial Position

The following tables include fair value and other related disclosures regarding all Derivatives held as of and for the indicated periods (in thousands):

	Balance Sheet			December 31,			December 31,
	Location			2012			2011
Balance sheet-related
Interest rate swap agreements in a gain position (an asset) related to:
Repurchase arrangements and similar borrowings		(a	)	$	169		$	617
Interest rate swap agreements in a loss position (a liability) related to:
Repurchase arrangements and similar borrowings		(a	)		(18,671	)		(15,691	)
Unsecured borrowings		(a	)		(14,197	)		(15,657	)
Related net interest payable		(b	)		(7,788	)		(10,023	)
				$	(40,487	)	$	(40,754	)

(a) The fair value of Derivatives with realized and unrealized gains are aggregated and recorded as an asset on the face of the Balance Sheet separately from the fair value of Derivatives with realized and unrealized losses that are recorded as a liability. The amount of unrealized losses that will be recognized in the Statement of Income over the next twelve months primarily in the form of fixed-rate swap payments in excess of current market rates totaled $15.3 million at December 31, 2012.

(b) Included in “Accounts payable and accrued expenses” on the face of the Balance Sheet.

Interest paid on Repurchase arrangements and similar borrowings, including related swap agreement cash flows, totaled $69.5 million, $55.2 million and $56.3 million during 2012, 2011 and 2010, respectively.

	Location of Gain or (Loss) Recognized in Net Income			December 31
				2012			2011			2010
Income statement-related
Components of effect on interest expense:
Amount of loss reclassified from AOCI related to the effective portion of active positions				$	(19,882	)	$	(28,066	)	$	(27,554	)
Effective portion of terminated positions					—			—			8
					(19,882	)		(28,066	)		(27,546	)
Amount of loss recognized (ineffective portion)					(542	)		(827	)		(140	)
Increase in interest expense and decrease in Net income as a result of the use of Derivatives		(a	)	$	(20,424	)	$	(28,893	)	$	(27,686	)
Other comprehensive income-related
Amount of loss recognized in other comprehensive income (effective portion)				$	(22,262	)	$	(51,751	)	$	(27,587	)

(a) Included in “Interest expense: Repurchase arrangements and similar borrowings” on the face of the Statement of Income.