REPURCHASE AGREEMENTS

The following tables present the components of the Company’s repurchase agreements as of June 30, 2013 and December 31, 2012 by the fair value and type of securities pledged as collateral to the repurchase agreements:



	June 30, 2013
Collateral Type	Balance			Weighted Average Rate		Fair Value of Collateral Pledged
Agency RMBS	$	2,885,261		0.40	%	$	2,994,711
Agency CMBS	244,739			0.39	%	295,461
Agency CMBS IOs	439,482			1.19	%	541,133
Non-Agency RMBS	8,986			1.88	%	10,796
Non-Agency CMBS	368,060			1.32	%	432,212
Non-Agency CMBS IO	102,298			1.38	%	130,605
Securitization financing bonds	23,017			1.61	%	25,893
Deferred costs	(451		)	n/a		n/a
	$	4,071,392		0.60	%	$	4,430,811



	December 31, 2012
Collateral Type	Balance			Weighted Average Rate		Fair Value of Collateral Pledged
Agency RMBS	$	2,365,982		0.48	%	$	2,458,200
Agency CMBS	248,771			0.47	%	291,445
Agency CMBS IOs	443,540			1.22	%	565,494
Non-Agency RMBS	7,808			1.84	%	9,634
Non-Agency CMBS	382,352			1.34	%	465,306
Non-Agency CMBS IOs	88,221			1.46	%	113,942
Securitization financing bonds	28,113			1.64	%	31,483
Deferred costs	(659		)	n/a		n/a
	$	3,564,128		0.70	%	$	3,935,504

The combined weighted average original term to maturity for the Company’s repurchase agreements was 49 days as of June 30, 2013 and 57 days as of December 31, 2012. The following table provides a summary of the original maturities as of June 30, 2013 and December 31, 2012:



Original Maturity	June 30, 2013		December 31, 2012
30 days or less	$	1,677,943	$	622,957
31 to 60 days	1,121,607		1,263,105
61 to 90 days	353,523		298,660
Greater than 90 days	918,770		1,380,065
	$	4,071,843	$	3,564,787

As of June 30, 2013, the Company had approximately 16% of its shareholders' equity at risk with Wells Fargo Bank National Association together with its affiliate Wells Fargo Securities, LLC. The borrowings outstanding with that counterparty and its affiliates as of June 30, 2013 were $432,710 with a weighted average borrowing rate of 1.07%. Of the amount outstanding with this counterparty and its affiliate, $193,204 is under a two-year repurchase facility with Wells Fargo Bank National Association, which is the facility's aggregate maximum borrowing capacity and which is set to mature on August 6, 2014, subject to certain early termination provisions contained in the master repurchase agreement. The facility is collateralized primarily by CMBS IO, and its weighted average borrowing rate as of June 30, 2013 was 1.45%. Shareholders' equity at risk did not exceed 10% for any of the Company's other counterparties.

As of June 30, 2013, the Company had repurchase agreement amounts outstanding with 21 of its 29 available counterparties. The Company's counterparties, as set forth in the master repurchase agreement with the counterparty, require the Company to comply with various customary operating and financial covenants, including, but not limited to, minimum net worth, maximum declines in net worth in a given period, and maximum leverage requirements as well as maintaining the Company's REIT status. In addition, some of the agreements contain cross default features, whereby default under an agreement with one lender simultaneously causes default under agreements with other lenders. To the extent that the Company fails to comply with the covenants contained in these financing agreements or is otherwise found to be in default under the terms of such agreements, the counterparty has the right to accelerate amounts due under the master repurchase agreement. The Company was in compliance with all covenants as of June 30, 2013.