Other Assets and Liabilities

Other Assets

Other assets at June 30, 2015 and December 31, 2014, are summarized in the following table.



(In Thousands)	June 30, 2015		December 31, 2014
Margin receivable	$	71,392	$	65,374
FHLBC stock	30,001		10,688
Pledged collateral	10,194		9,927
Guarantee asset	6,417		7,201
Investment receivable	5,378		1,103
Deposits	5,000		5,000
Fixed assets and leasehold improvements ⁽¹⁾	4,442		3,008
REO	4,410		4,391
Income tax receivables	3,278		175
Prepaid expenses	3,031		3,372
Other	4,077		3,657
Total Other Assets	$	147,620	$	113,896


(1)	Fixed assets and leasehold improvements have a basis of $7 million and accumulated depreciation of $4 million at June 30, 2015.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at June 30, 2015 and December 31, 2014 are summarized in the following table.



(In Thousands)	June 30, 2015		December 31, 2014
Accrued compensation	$	11,927	$	19,273
Margin payable	$	10,156	$	6,455
Guarantee obligation	6,146		7,201
Current accounts payable	5,446		2,112
Residential loan and MSR repurchase reserve	5,083		3,724
Accrued operating expenses	3,501		3,334
Legal reserve	2,000		2,000
Income tax payable	221		—
Other	5,445		8,145
Total Other Liabilities	$	49,925	$	52,244

Margin Receivable and Payable

Margin receivable and payable resulted from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties whereby we or the counterparty were required to post collateral.

Investment Receivable and Unsettled Trades

In accordance with our policy to record purchases and sales of securities on the trade date, if the trade and settlement of a purchase or sale crosses over a quarterly reporting period, we will record an investment receivable for sales and an unsettled trades liability for purchases.

Guarantee Asset, Pledged Collateral, and Guarantee Obligation

The pledged collateral, guarantee asset, and guarantee obligation presented in the tables above are related to the risk sharing arrangement we entered into with Fannie Mae in the fourth quarter of 2014. See Note 15 for additional information on the on the risk sharing arrangement.

REO

The carrying value of REO at June 30, 2015, was $4 million, which includes the net effect of $5 million related to transfers into REO during the six months ended June 30, 2015, offset by $3 million of REO liquidations, and $2 million of negative market valuation adjustments. At June 30, 2015 and December 31, 2014, there were 18 and 22 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Sequoia entities.

See Note 15 for additional information on the legal and residential repurchase reserves.