REPURCHASE AGREEMENTS

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



	September 30, 2013
Collateral Type	Balance			Weighted Average Rate		Fair Value of Collateral Pledged
Agency RMBS	$	2,634,120		0.41	%	2,721,562
Agency CMBS	234,633			0.39	%	294,556
Agency CMBS IOs	377,977			1.17	%	463,894
Non-Agency RMBS	10,932			1.80	%	13,616
Non-Agency CMBS	298,548			1.29	%	364,977
Non-Agency CMBS IO	97,584			1.68	%	125,539
Securitization financing bonds	21,403			1.60	%	24,853
Deferred costs	(347		)	n/a		n/a
	$	3,674,850		0.59	%	$	4,008,997



	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 increased to 91 days as of September 30, 2013 from 57 days as of December 31, 2012. The Company has been able to extend the maturity dates for its repurchase agreements due to discontinuing cash flow hedge accounting. The following table provides a summary of the original maturities as of September 30, 2013 and December 31, 2012:



Original Maturity	September 30, 2013		December 31, 2012
30 days or less	$	486,150	$	622,957
31 to 60 days	677,725		1,263,105
61 to 90 days	333,007		298,660
91 to 120 days	1,021,594		1,092,681
121 to 150 days	583,888		—
Greater than 150 days	572,833		287,384
	$	3,675,197	$	3,564,787

As of September 30, 2013, the Company had approximately 17% of its shareholders' equity at risk (defined as the excess of collateral pledged over the borrowing outstanding) 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 September 30, 2013 were $401,404 with a weighted average borrowing rate of 1.17%. Of the amount outstanding with this counterparty and its affiliate, $187,508 is under a two-year repurchase facility with Wells Fargo Bank National Association. The facility is collateralized primarily by CMBS IO, and its weighted average borrowing rate as of September 30, 2013 was 1.44%. Shareholders' equity at risk did not exceed 10% for any of the Company's other counterparties. Please see Note 10 regarding changes to the master repurchase agreement for this facility that occurred subsequent to September 30, 2013.

As of September 30, 2013, the Company had repurchase agreement amounts outstanding with 21 of its 31 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 September 30, 2013.