OFFSETTING ASSETS AND LIABILITIES

The Company's repurchase agreements and derivatives are subject to underlying agreements with master netting or similar arrangements, which provide for the right of offset in the event of default or in the event of bankruptcy of either party to the transactions. The Company reports its assets and liabilities subject to these arrangements on a gross basis. The following tables present information regarding those assets and liabilities subject to such arrangements as if the Company had presented them on a net basis as of December 31, 2016 and December 31, 2015:



	Offsetting of Assets
	Gross Amount of Recognized Assets		Gross Amount Offset in the Balance Sheet		Net Amount of Assets Presented in the Balance Sheet		Gross Amount Not Offset in the Balance Sheet ⁽¹⁾						Net Amount
	Gross Amount of Recognized Assets		Gross Amount Offset in the Balance Sheet		Net Amount of Assets Presented in the Balance Sheet		Financial Instruments Received as Collateral			Cash Received as Collateral			Net Amount
December 31, 2016
Derivative assets	$	28,534	$	—	$	28,534	$	(6,449	)	$	(22,085	)	$	—

December 31, 2015:
Derivative assets	$	7,835	$	—	$	7,835	$	(7,835	)	$	—		$	—



	Offsetting of Liabilities
	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet		Gross Amount Not Offset in the Balance Sheet ⁽¹⁾						Net Amount
	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet		Financial Instruments Posted as Collateral			Cash Posted as Collateral			Net Amount
December 31, 2016
Derivative liabilities	$	6,922	$	—	$	6,922	$	(6,913	)	$	—		$	9
Repurchase agreements	2,898,952		—		2,898,952		(2,898,952		)	—			—
	$	2,905,874	$	—	$	2,905,874	$	(2,905,865	)	$	—		$	9

December 31, 2015:
Derivative liabilities	$	41,205	$	—	$	41,205	$	(9,079	)	$	(32,111	)	$	15
Repurchase agreements	2,589,420		—		2,589,420		(2,589,420		)	—			—
	$	2,630,625	$	—	$	2,630,625	$	(2,598,499	)	$	(32,111	)	$	15


(1)	Amounts disclosed for collateral received by or posted to the same counterparty include cash and the fair value of MBS up to and not exceeding the net amount of the asset or liability presented in the balance sheet. The fair value of the actual collateral received by or posted to the same counterparty may exceed the amounts presented.