TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Trading Securities, at Fair Value (Notes)

Trading Securities, at Fair Value (Notes)

6 Months Ended

Jun. 30, 2015

At December 31, 2014 and during the three and six months ended June 30, 2015, the Company held U.S. Treasuries in a TRS and classified these securities as trading instruments due to short-term investment objectives. The following table presents the carrying value of the Company’s trading securities as of June 30, 2015 and December 31, 2014:



(in thousands)	June 30, 2015		December 31, 2014
Amortized cost	$	—	$	1,996,289
Unrealized gains (losses), net	—		1,367
Carrying value	$	—	$	1,997,656

For both the three and six months ended June 30, 2015, the Company sold trading securities for $2.0 billion with an amortized cost of $2.0 billion, resulting in realized gains of $7.4 million on the sale of these securities. For the three and six months ended June 30, 2014, the Company sold trading securities for $44.8 million and $143.4 million with an amortized cost of $44.8 million and $143.0 million, resulting in realized losses of $7,031 and gains of $0.4 million, respectively, on the sale of these securities.

For the three and six months ended June 30, 2015, trading securities experienced changes in unrealized losses of $13.4 million and $1.4 million, respectively. For the three and six months ended June 30, 2014, trading securities experienced changes in unrealized gains of $1.7 million and $1.5 million, respectively. Both realized and unrealized gains and losses are recorded as a component of gain (loss) on investment securities in the Company’s condensed consolidated statements of comprehensive income.

At December 31, 2014, the Company pledged trading securities with a carrying value of $2.0 billion as collateral for repurchase agreements. See Note 16 - Repurchase Agreements.