Arlington Asset Investment (AAIC) 10-Q 3 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Arlington Asset Investment Corp.
Entity Central Index Key	1,209,028
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	AI
Entity Common Stock, Shares Outstanding		28,732,799

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 18,696	$ 21,614
Interest receivable	13,368	12,546
Sold securities receivable	84,349
Derivative assets, at fair value	9,921	763
Deferred tax assets, net		800
Deposits, net	61,550	59,103
Other assets	15,973	11,203
Total assets	4,254,376	4,160,529
Liabilities:
Repurchase agreements	3,752,582	3,667,181
Interest payable	3,728	4,418
Accrued compensation and benefits	2,413	5,015
Dividend payable	12,265	17,550
Derivative liabilities, at fair value	234	4,833
Purchased securities payable	77,419
Deferred tax liabilities, net	24,011
Other liabilities	1,265	1,335
Long-term unsecured debt	73,992	73,880
Total liabilities	3,947,909	3,774,212
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value, 25,000,000 shares authorized, 340,752 and 303,291 shares issued and outstanding, respectively (liquidation preference of $8,519 and $7,582, respectively)	8,007	7,108
Additional paid-in capital	1,976,309	1,974,941
Accumulated deficit	(1,678,131)	(1,596,013)
Total stockholders’ equity	306,467	386,317
Total liabilities and stockholders’ equity	4,254,376	4,160,529
Agency MBS
ASSETS
Mortgage-backed securities, at fair value	4,050,458	4,054,424
Liabilities:
Repurchase agreements	3,752,582	3,667,181
Private-Label MBS
ASSETS
Mortgage-backed securities, at fair value	61	76
Common Class A
Stockholders’ Equity:
Common stock	$ 282	$ 281

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, issued (in shares)	340,752	303,291
Preferred stock, outstanding (in shares)	340,752	303,291
Preferred stock, liquidation preference	$ 8,519	$ 7,582
Common Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	450,000,000	450,000,000
Common stock, shares issued (in shares)	28,201,699	28,140,721
Common stock, shares outstanding (in shares)	28,201,699	28,140,721

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income
Other	$ 105	$ 21	$ 236	$ 41
Total interest income	30,055	31,461	60,915	61,804
Interest expense
Total interest expense	19,193	12,528	35,749	22,594
Net interest income	10,862	18,933	25,166	39,210
Investment loss, net
(Loss) gain on trading investments, net	(20,892)	15,855	(109,235)	11,636
Gain (loss) from derivative instruments, net	16,052	(31,678)	56,206	(29,373)
Other, net	324	(147)	374	5
Total investment loss, net	(4,516)	(15,970)	(52,655)	(17,732)
General and administrative expenses
Compensation and benefits	2,061	2,804	5,101	6,249
Other general and administrative expenses	1,400	1,350	2,657	2,830
Total general and administrative expenses	3,461	4,154	7,758	9,079
Income (loss) before income taxes	2,885	(1,191)	(35,247)	12,399
Income tax provision	6,493	16,737	24,744	25,073
Net loss	(3,608)	(17,928)	(59,991)	(12,674)
Dividend on preferred stock	(149)	(35)	(286)	(35)
Net loss attributable to common stock	$ (3,757)	$ (17,963)	$ (60,277)	$ (12,709)
Basic loss per common share	$ (0.13)	$ (0.74)	$ (2.14)	$ (0.53)
Diluted loss per common share	$ (0.13)	$ (0.74)	$ (2.14)	$ (0.53)
Weighted-average common shares outstanding (in thousands)
Basic	28,210	24,319	28,204	23,987
Diluted	28,210	24,319	28,204	23,987
Unsecured Debt
Interest expense
Long-term debt	$ 1,257	$ 1,214	$ 2,488	$ 2,421
Secured Debt
Interest expense
Short-term debt	17,936	11,314	33,261	20,173
Agency MBS
Interest income
Mortgage-backed securities	29,940	31,397	60,665	61,683
Private-Label MBS
Interest income
Mortgage-backed securities	$ 10	$ 43	$ 14	$ 80

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands		Total	Series B Preferred Stock	Common Class A	Preferred StockSeries B Preferred Stock	Common StockCommon Class A	Common StockCommon Class B	Additional Paid-in Capital	Additional Paid-in CapitalCommon Class A	Accumulated Deficit
Balances at Dec. 31, 2016		$ 358,813				$ 236		$ 1,910,284		$ (1,551,707)
Balances (in shares) at Dec. 31, 2016						23,607,111	20,256
Net Income (loss)		17,435								17,435
Conversion of Class B common stock to Class A common stock (in shares)						20,256	(20,256)
Issuance of stock			$ 7,108	$ 61,213	$ 7,108	$ 45			$ 61,168
Issuance of stock (in shares)					303,291	4,472,083
Issuance of Class A common stock under stock-based compensation plans (in shares)						74,000
Repurchase of Class A common stock under stock-based compensation plans		(437)						(437)
Repurchase of Class A common stock under stock-based compensation plans (in shares)						(32,729)
Stock-based compensation		3,926						3,926
Dividends declared	[1]	(61,741)								(61,741)
Balances at Dec. 31, 2017		386,317			$ 7,108	$ 281		1,974,941		(1,596,013)
Balances (in shares) at Dec. 31, 2017					303,291	28,140,721
Net Income (loss)		(59,991)								(59,991)
Issuance of stock			$ 899	$ 688	$ 899	$ 1			$ 687
Issuance of stock (in shares)					37,461	66,989
Cumulative-effect of accounting change (see Note 2) | ASU No. 2016-01		4,059								4,059
Repurchase of Class A common stock under stock-based compensation plans		(67)						(67)
Repurchase of Class A common stock under stock-based compensation plans (in shares)						(6,011)
Stock-based compensation		748						748
Dividends declared	[1]	(26,186)								(26,186)
Balances at Jun. 30, 2018		$ 306,467			$ 8,007	$ 282		$ 1,976,309		$ (1,678,131)
Balances (in shares) at Jun. 30, 2018					340,752	28,201,699
[1]	The Board of Directors approved and the Company declared and paid dividends of $2.275 and $0.925 per common share for the year ended December 31, 2017 and the six months ended June 30, 2018, respectively. The Board of Directors approved and the Company declared and paid dividends of $1.113 and $0.875 per preferred share for the year ended December 31, 2017 and the six months ended June 30, 2018, respectively.

CONSOLIDATED STATEMENTS OF CHA6

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Statement Of Stockholders Equity [Abstract]
Dividends declared per common share	$ 0.925	$ 2.275
Dividends paid per common share	0.925	2.275
Dividends declared per preferred share	0.875	1.113
Dividends paid per preferred share	$ 0.875	$ 1.113

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (59,991)	$ (12,674)
Adjustments to reconcile net loss to net cash provided by operating activities
Investment loss, net	52,655	17,732
Net premium amortization on mortgage-backed securities	16,199	15,938
Deferred tax provision	24,744	24,667
Other	799	1,245
Changes in operating assets
Interest receivable	(822)	(1,139)
Other assets	(255)	146
Changes in operating liabilities
Interest payable and other liabilities	(909)	(419)
Accrued compensation and benefits	(2,603)	(2,448)
Net cash provided by operating activities	29,817	43,048
Cash flows from investing activities:
Proceeds from sales of agency mortgage-backed securities	1,496,422	996,304
Receipt of principal payments on agency mortgage-backed securities	233,577	229,271
Proceeds from (payments for) derivatives and deposits, net	40,002	(22,053)
Other	(15)	1,407
Net cash used in investing activities	(88,401)	(296,187)
Cash flows from financing activities:
Proceeds from repurchase agreements, net	85,401	264,597
Proceeds from issuance of common stock	688	33,346
Proceeds from issuance of preferred stock	899	3,500
Dividends paid	(31,322)	(29,790)
Net cash provided by financing activities	55,666	271,653
Net (decrease) increase in cash and cash equivalents	(2,918)	18,514
Cash and cash equivalents, beginning of period	21,614	54,794
Cash and cash equivalents, end of period	18,696	73,308
Supplemental cash flow information:
Cash payments for interest	36,327	22,896
Agency MBS
Cash flows from investing activities:
Purchases of mortgage-backed securities	$ (1,858,387)	$ (1,501,116)

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	Note 1. Organization and Basis of Presentation Arlington Asset Investment Corp. (“Arlington Asset”) and its consolidated subsidiaries (unless the context otherwise provides, collectively, the “Company”) is an investment firm that acquires and holds residential mortgage-related assets, primarily comprised of residential mortgage-backed securities (“MBS”). The Company’s investments in residential MBS include (i) residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a government-sponsored enterprise (“GSE”) such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), which are collectively referred to as “agency MBS,” and (ii) residential MBS issued by private institutions for which the principal and interest payments are not guaranteed by a GSE, which are referred to as “private-label MBS” or “non-agency MBS.” The unaudited interim consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The Company’s unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company’s consolidated financial statements include the accounts of Arlington Asset and all other entities in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Although the Company bases these estimates and assumptions on historical experience and all other reasonably available information that the Company believes to be relevant under the circumstances, such estimates frequently require management to exercise significant subjective judgment about matters that are inherently uncertain. Actual results may differ from these estimates. Certain amounts in the consolidated financial statements and notes for prior periods have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on the previously reported net income, other comprehensive income, total assets or total liabilities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less. As of June 30, 2018 and December 31, 2017, approximately 98% of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities backed by the U.S. government. Investment Security Purchases and Sales Purchases and sales of investment securities are recorded on the settlement date of the transfer unless the trade qualifies as a “regular-way” trade and the associated commitment qualifies for an exemption from the accounting guidance applicable to derivative instruments. A regular-way trade is an investment security purchase or sale transaction that is expected to settle within the period of time following the trade date that is prevalent or traditional for that specific type of security. Any amounts payable or receivable for unsettled security trades are recorded as “sold securities receivable” or “purchased securities payable” in the consolidated balance sheets. Interest Income Recognition for Investments in Agency MBS The Company recognizes interest income for its investments in agency MBS by applying the “interest method” permitted by GAAP, whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in agency MBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the effective interest rate on the remaining security balance is unaffected. Other Significant Accounting Policies Certain of the Company’s other significant accounting policies are summarized in the following notes: Investments in agency MBS, subsequent measurement Note 3 Borrowings Note 4 To-be-announced agency MBS transactions, including “dollar rolls” Note 5 Derivative instruments Note 5 Balance sheet offsetting Note 6 Fair value measurements Note 7 Refer to the Company’s 2017 Annual Report on Form 10-K for a complete inventory and summary of the Company’s significant accounting policies. Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements and their actual or expected effect on the Company’s consolidated financial statements: Standard Description Date of Adoption Effect on the Consolidated Financial Statements Recently Adopted Accounting Guidance Accounting Standards Update (“ASU”) No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date This amendment defers the effective date of ASU No. 2014-09 for all entities by one year. ASU No. 2014-09 requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue recognition with respect to financial instruments is not within the scope of ASU No. 2014-09. January 1, 2018 The adoption of ASU No. 2015-14 did not impact the Company’s consolidated financial statements. ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) This amendment makes targeted changes to certain aspects of guidance applicable to financial assets and financial liabilities. The amendment primarily affects accounting for certain equity investments, financial liabilities measured under the fair value option, and certain financial instrument presentation and disclosure requirements. Accounting for investments in debt securities and financial liabilities not measured under the fair value option is largely unaffected by this amendment. January 1, 2018 ASU No. 2016-01 requires entities to measure investments in equity securities at fair value, unless fair value measurement is impractical, with changes in fair value recognized in current period earnings. Upon the adoption of ASU No. 2016-01, the Company recognized a cumulative-effect increase of $4,059 (net of taxes) in stockholders’ equity representing, as of January 1, 2018, the excess of fair value over historical cost of its investments in equity securities that were previously carried at their historical cost (net of impairments). Subsequent to January 1, 2018, all changes in the estimated fair value of such instruments will be recognized in net income. ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) This amendment was issued to reduce diversity in practice with respect to eight various statement of cash flow reporting issues for which existing GAAP is either unclear or does not provide specific guidance. January 1, 2018 The adoption of ASU No. 2016-15 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU No. 2016-02, Leases (Topic 842) This amendment replaces the existing lease accounting model with a revised model. The primary change effectuated by the revised lease accounting model is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. January 1, 2019 The primary impact of the adoption of ASU No. 2016-02 will be the recognition of lease liabilities and associated right-of-use assets on the Company’s balance sheet. The Company does not expect the adoption of ASU No. 2016-02 will have a material effect on the timing or amount of periodic lease expense recognized in net income. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 606) The amendments in this update require financial assets measured at amortized cost as well as available-for-sale debt securities to be measured for impairment on the basis of the net amount expected to be collected. Credit losses are to be recognized through an allowance for credit losses, which differs from the direct write-down of the amortized cost basis currently required for other-than-temporary impairments of investments in debt securities. This update also makes substantial changes to the manner in which interest income is to be recognized for financial assets acquired with a more-than-insignificant amount of credit deterioration since origination. This update will not affect the accounting for investments in debt securities that are classified as trading securities. January 1, 2019 As of June 30, 2018, all of the Company’s investments in debt securities are classified as trading securities. Accordingly, the Company does not expect ASU No. 2016-13 to have a material impact on its consolidated financial statements. ASU No. 2017-08, Premium Amortization of Purchased Callable Debt Securities (Subtopic 310-20) This amendment requires purchase premiums for investments in debt securities that are noncontingently callable by the issuer (at a fixed price and preset date) to be amortized to the earliest call date. Previously, purchase premiums for such investments were permitted to be amortized to the instrument’s maturity date. January 1, 2020 Investments in prepayable financial assets, such as residential MBS, for which the embedded call options are not held by the issuer are not within the scope of ASU No. 2017-08. Accordingly, the Company does not expect the adoption of ASU No. 2017-08 to have a material effect on its consolidated financial statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) This update made several targeted amendments to existing GAAP with the objectives of facilitating (i) financial reporting that more closely reflects entities’ risk management strategies and (ii) greater ease of understanding and interpreting the effects of hedge accounting on an entities’ reported results. January 1, 2019 Hedge accounting pursuant to GAAP is an elective, rather than a required, accounting model. The Company does not currently elect to apply hedge accounting and, at this time, does not plan to elect to apply hedge accounting in the future. Accordingly, at this time, the Company does not expect ASU No. 2017-12 will have an effect on its consolidated financial statements.

Investments in Agency MBS

Investments in Agency MBS	6 Months Ended
	Jun. 30, 2018
Agency MBS
Investments in MBS	Note 3. Investments in Agency MBS The Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of June 30, 2018 and December 31, 2017, the Company had $4,050,458 and $4,054,424, respectively, of fair value in agency MBS classified as trading securities. As of June 30, 2018 all the Company’s investments in agency MBS represent undivided (or “pass-through”) beneficial interests in specified pools of fixed-rate mortgage loans. All periodic changes in the fair value of trading agency MBS that are not attributed to interest income are recognized as a component of “investment gain (loss), net” in the accompanying consolidated statements of comprehensive income. The following table provides additional information about the gains and losses recognized as a component of “investment gain (loss), net” in the Company’s consolidated statements of comprehensive income for the periods indicated with respect to investments in agency MBS classified as trading securities: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ (17,876 ) $ 13,474 $ (73,220 ) $ 11,191 Agency MBS sold during the period (3,005 ) 2,343 (36,006 ) 397 Total $ (20,881 ) $ 15,817 $ (109,226 ) $ 11,588 The Company also invests in and finances fixed-rate agency MBS on a generic pool basis through sequential series of to-be-announced security transactions commonly referred to as “dollar rolls.” Dollar rolls are accounted for as a sequential series of derivative instruments. Refer to “Note 5. Derivative Instruments” for further information about dollar rolls.

Borrowings

Borrowings	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Borrowings	Note 4. Borrowings Repurchase Agreements The Company finances the purchase of MBS through repurchase agreements, which are accounted for as collateralized borrowing arrangements. In a repurchase transaction, the Company sells MBS to a counterparty under a master repurchase agreement in exchange for cash and concurrently agrees to repurchase the same security at a future date in an amount equal to the cash initially exchanged plus an agreed-upon amount of interest. MBS sold under agreements to repurchase remain on the Company’s consolidated balance sheets because the Company maintains effective control over such securities throughout the duration of the arrangement. Throughout the contractual term of a repurchase agreement, the Company recognizes a “repurchase agreement” liability on its consolidated balance sheets to reflect the obligation to repay to the counterparty the proceeds received upon the initial transfer of the MBS. The difference between the proceeds received by the Company upon the initial transfer of the MBS and the contractually agreed-upon repurchase price is recognized as interest expense over the term of the repurchase arrangement on a level-yield basis. Amounts borrowed pursuant to repurchase agreements are equal in value to a specified percentage of the fair value of the pledged collateral. The Company retains beneficial ownership of the pledged collateral throughout the term of the repurchase agreement. The counterparty to the repurchase agreements may require that the Company pledge additional securities or cash as additional collateral to secure borrowings when the value of the collateral declines. As of June 30, 2018 and December 31, 2017, the Company had no amount at risk with a single repurchase agreement counterparty or lender greater than 10% of equity. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of the dates indicated: June 30, 2018 December 31, 2017 Pledged with agency MBS: Repurchase agreements outstanding $ 3,752,582 $ 3,667,181 Agency MBS collateral, at fair value 3,959,656 3,858,815 Net amount (1) 207,074 191,634 Weighted-average rate 2.12 % 1.56 % Weighted-average term to maturity 15.8 days 12.6 days (1) Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three and six months ended June 30, 2018 and 2017: June 30, 2018 June 30, 2017 Weighted-average outstanding balance during the three months ended $ 3,619,483 $ 4,125,631 Weighted-average rate during the three months ended 1.96 % 1.08 % Weighted-average outstanding balance during the six months ended $ 3,675,051 $ 4,025,321 Weighted-average rate during the six months ended 1.80 % 1.00 % Long-Term Unsecured Debt As of June 30, 2018 and December 31, 2017, the Company had $73,992 and $73,880, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $1,308 and $1,420, respectively. The Company’s long-term debentures consisted of the following as of the dates indicated: June 30, 2018 December 31, 2017 Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Outstanding Principal $ 35,300 $ 25,000 $ 15,000 $ 35,300 $ 25,000 $ 15,000 Annual Interest Rate 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % Interest Payment Frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Weighted-Average Interest Rate 6.75 % 6.625 % 5.10 % 6.75 % 6.625 % 4.11 % Maturity March 15, 2025 May 1, 2023 2033 - 2035 March 15, 2025 May 1, 2023 2033 - 2035 Early Redemption Date March 15, 2018 May 1, 2016 2008 - 2010 March 15, 2018 May 1, 2016 2008 - 2010 The Senior Notes due 2023 and the Senior Notes due 2025 are publicly traded on the New York Stock Exchange under the ticker symbols “AIW” and “AIC,” respectively. The Senior Notes due 2023 and Senior Notes due 2025 may be redeemed in whole or in part at any time and from time to time at the Company’s option at a redemption price equal to the principal amount plus accrued and unpaid interest. The indenture governing these Senior Notes contains certain covenants, including limitations on the Company’s ability to merge or consolidate with other entities or sell or otherwise dispose of all or substantially all of the Company’s assets.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 5. Derivative Instruments In the normal course of its operations, the Company is a party to financial instruments that are accounted for as derivative instruments. Derivative instruments are recorded at fair value as either “derivative assets” or “derivative liabilities” in the consolidated balance sheets, with all periodic changes in fair value reflected as a component of “investment gain (loss), net” in the consolidated statements of comprehensive income. Cash receipts or payments related to derivative instruments are classified as investing activities within the consolidated statements of cash flows. Types and Uses of Derivative Instruments Interest Rate Derivatives The Company is party to interest rate derivative instruments that are intended to economically hedge changes, attributable to changes in benchmark interest rates, in certain MBS fair values and future interest cash flows on the Company’s short-term financing arrangements. Interest rate derivatives include centrally cleared interest rate swaps, exchange-traded instruments, such as Eurodollar futures, interest rate swap futures, U.S. Treasury note futures and options on futures, and nonexchange-traded instruments such as options on agency MBS. While the Company uses its interest rate derivatives to economically hedge a portion of its interest rate risk, it has not designated such contracts as hedging instruments for financial reporting purposes. The Company exchanges cash “variation margin” with the counterparties to its interest rate derivative instruments at least on a daily basis based upon daily changes in fair value as measured by the Chicago Mercantile Exchange (“CME”), the central clearinghouse through which those derivatives are cleared. In addition, the CME requires market participants to deposit and maintain an “initial margin” amount which is determined by the CME and is generally intended to be set at a level sufficient to protect the CME from the maximum estimated single-day price movement in that market participant’s contracts. Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate derivative instruments are included in the line item “deposits, net” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange traded derivative instrument is legally characterized as the daily settlement of the derivative instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period. To-Be-Announced Agency MBS Transactions, Including “Dollar Rolls” In addition to interest rate derivatives that are used for interest rate risk management, the Company is a party to derivative instruments that economically serve as investments, such as forward commitments to purchase fixed-rate “pass-through” agency MBS on a non-specified pool basis, which are known as to-be-announced (“TBA”) securities. A TBA security is a forward commmitment for the purchase or sale of a fixed-rate agency MBS at a predetermined price, face amount, issuer, coupon, and stated maturity for settlement on an agreed upon future date. The specific agency MBS that will be delivered to satisfy the TBA trade is not known at the inception of the trade. The Company accounts for TBA securities as derivative instruments because the Company cannot assert that it is probable at inception and throughout the term of an individual TBA commitment that its settlement will result in physical delivery of the underlying agency MBS, or the individual TBA commitment will not settle in the shortest time period possible. The Company’s agency MBS investment portfolio includes net purchase (or “net long”) positions in TBA securities, which are primarily the result of executing sequential series of “dollar roll” transactions. The Company executes dollar roll transactions as a means of investing in and financing non-specified fixed-rate agency MBS. Such transactions involve effectively delaying (or “rolling”) the settlement of a forward purchase of a TBA agency MBS by entering into an offsetting sale with the same counterparty prior to the settlement date, net settling the “paired-off” positions in cash, and contemporaneously entering, with the same counterparty, another forward purchase of a TBA agency MBS of the same characteristics for a later settlement date. TBA securities purchased for a forward settlement month are generally priced at a discount relative to TBA securities sold for settlement in the current month. This discount, often referred to as the dollar roll “price drop,” reflects compensation for the net interest income (interest income less financing costs) that is foregone as a result of relinquishing beneficial ownership of the MBS for the duration of the dollar roll (also known as “dollar roll income”). By executing a sequential series of dollar roll transactions, the Company is able to create the economic experience of investing in an agency MBS, financed with a repurchase agreement, over a period of time. Forward purchases and sales of TBA securities are accounted for as derivative instruments in the Company’s financial statements. Accordingly, dollar roll income is recognized as a component of “investment gain (loss), net” along with all other periodic changes in the fair value of TBA commitments. In addition to transacting in net long positions in TBA securities for investment purposes, the Company may also, from time to time, transact in net sale (or “net short”) positions in TBA securities for the purpose of economically hedging a portion of the sensitivity of the fair value of the Company’s investments in agency MBS to changes in interest rates. Receivables recognized for the right to reclaim cash collateral posted by the Company in respect of TBA transactions is included in the line item “deposits, net” in the accompanying consolidated balance sheets. Liabilities recognized for the obligation to return cash collateral received by the Company in respect of TBA transactions is included in the line item “other liabilities” in the accompanying consolidated balance sheets. In addition to TBA transactions, the Company may, from time to time, enter into commitments to purchase or sell specified agency MBS that do not qualify as regular-way security trades. Such commitments are also accounted for as derivative instruments. Derivative Instrument Population and Fair Value The following table presents the fair value of the Company’s derivative instruments as of the dates indicated: June 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Interest rate swaps $ 5,044 $ — $ — $ (3,338 ) 5-year U.S. Treasury note futures — — — (20 ) 10-year U.S. Treasury note futures 1,422 — — (1,321 ) TBA commitments 3,455 (234 ) 763 (154 ) Total $ 9,921 $ (234 ) $ 763 $ (4,833 ) Interest Rate Swaps The Company’s interest rate swap agreements represent agreements to make semiannual interest payments based upon a fixed interest rate and receive quarterly variable interest payments based upon the prevailing three-month LIBOR on the date of reset. The following table presents information about the Company’s interest rate swap agreements that were in effect as of June 30, 2018: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,050,000 1.53 % 2.34 % 0.81 % 2.0 $ 893 3 to less than 7 years 225,000 1.95 % 2.32 % 0.37 % 3.8 331 7 to less than 10 years 2,000,000 2.18 % 2.33 % 0.15 % 8.3 3,562 10 or more years 50,000 2.98 % 2.33 % (0.65 )% 29.7 258 Total / weighted-average $ 3,325,000 1.97 % 2.33 % 0.36 % 6.3 $ 5,044 The following table presents information about the Company’s interest rate swap agreements that were in effect as of December 31, 2017: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,300,000 1.28 % 1.51 % 0.23 % 1.8 $ (248 ) 3 to less than 7 years 700,000 1.87 % 1.48 % (0.39 )% 3.9 (454 ) 7 to 10 years 1,600,000 1.90 % 1.55 % (0.35 )% 8.3 (2,636 ) Total / weighted-average $ 3,600,000 1.67 % 1.52 % (0.15 )% 5.1 $ (3,338 ) U.S. Treasury Note Futures The Company’s 10-year U.S. Treasury note futures held as of June 30, 2018 are short positions with an aggregate notional amount of $700,000 that mature in September 2018. Upon the maturity date of these futures contracts, the Company has the option to either net settle each contract in cash in an amount equal to the difference between the then-current fair value of the underlying 10-year U.S. Treasury note and the contractual sale price inherent to the futures contract, or to physically settle the contract by delivering the underlying 10-year U.S. Treasury note. As of December 31, 2017, the Company held short positions of 5-year and 10-year U.S. Treasury note futures with aggregate notional amounts of $21,600 and $650,000, respectively. Options on 10-year U.S. Treasury Note Futures The Company purchases and sells exchange-traded options on 10-year U.S. Treasury note futures contracts with the objective of economically hedging a portion of the sensitivity of its investments in agency MBS to significant changes in interest rates. The Company may purchase put options which provide the Company with the right to sell 10-year U.S. Treasury note futures to a counterparty, and the Company may also write call options that provide a counterparty with the option to buy 10-year U.S. Treasury note futures from the Company. In order to limit its exposure on its interest rate derivative instruments from a significant decline in long-term interest rates, the Company may also purchase contracts that provide the Company with the option to buy, or call, 10-year U.S. Treasury note futures from a counterparty. The options may be exercised at any time prior to their expiry, and if exercised, may be net settled in cash or through physical receipt or delivery of the underlying futures contracts. As of June 30, 2018 and December 31, 2017, the Company had no outstanding options on 10-year U.S. Treasury note futures contracts. TBA Commitments The following tables present information about the Company’s TBA commitments as of the dates indicated: June 30, 2018 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 4.0% 30-year MBS purchase commitments $ 100,000 $ 101,406 $ 101,906 $ 500 4.5% 30-year MBS purchase commitments 900,000 934,561 936,813 2,252 5.0% 30-year MBS purchase commitments 200,000 211,203 211,906 703 4.5% 30-year MBS sale commitments (100,000 ) (103,828 ) (104,062 ) (234 ) Total TBA commitments, net $ 1,100,000 $ 1,143,342 $ 1,146,563 $ 3,221 December 31, 2017 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 3.0% 15-year MBS purchase commitments $ 250,000 $ 254,873 $ 254,766 $ (107 ) 3.5% 30-year MBS purchase commitments 1,015,000 1,041,496 1,042,212 716 Total TBA commitments, net $ 1,265,000 $ 1,296,369 $ 1,296,978 $ 609 Derivative Instrument Gains and Losses The following tables provide information about the derivative gains and losses recognized within the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest rate derivatives: Interest rate swaps: Net interest income (expense) (1) $ 2,483 $ (5,293 ) $ 1,667 $ (10,702 ) Unrealized gains (losses), net 3,780 (26,991 ) 54,637 (18,824 ) Gains realized upon early termination 10,314 65 20,483 696 Total interest rate swap gains (losses), net 16,577 (32,219 ) 76,787 (28,830 ) U.S. Treasury note futures, net 6,160 (2,176 ) 18,480 (2,041 ) Options on U.S. Treasury note futures, net — (1,736 ) — (6,153 ) Total interest rate derivative gains (losses), net 22,737 (36,131 ) 95,267 (37,024 ) TBA and specified agency MBS commitments: TBA dollar roll income (2) 6,742 4,298 13,385 7,696 Other (losses) gains on agency MBS commitments, net (13,427 ) 155 (52,446 ) (45 ) Total (losses) gains on agency MBS commitments, net (6,685 ) 4,453 (39,061 ) 7,651 Total derivative gains (losses), net $ 16,052 $ (31,678 ) $ 56,206 $ (29,373 ) (1) Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements. (2) Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase. Derivative Instrument Activity The following tables summarize the volume of activity, in terms of notional amount, related to derivative instruments for the periods indicated: For the Three Months Ended June 30, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,525,000 $ 300,000 $ — $ (500,000 ) $ 3,325,000 10-year U.S. Treasury note futures 850,000 900,000 (1,050,000 ) — 700,000 Commitments to purchase (sell) MBS, net 1,415,000 3,865,000 (4,180,000 ) — 1,100,000 For the Three Months Ended June 30, 2017 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 375,000 $ — $ (125,000 ) $ 3,850,000 10-year U.S. Treasury note futures — 608,000 (258,000 ) — 350,000 Purchased put options on 10-year U.S. Treasury note futures 700,000 100,000 (800,000 ) — — Sold call options on 10-year U.S. Treasury note futures 350,000 300,000 (650,000 ) — — Purchased call options on 10-year U.S. Treasury note futures 350,000 1,500,000 (1,150,000 ) — 700,000 Commitments to purchase (sell) MBS, net 450,000 2,865,000 (2,205,000 ) — 1,110,000 For the Six Months Ended June 30, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 550,000 $ — $ (825,000 ) $ 3,325,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 1,850,000 (1,800,000 ) — 700,000 Commitments to purchase (sell) MBS, net 1,265,000 8,120,000 (8,285,000 ) — 1,100,000 For the Six Months Ended June 30, 2017 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,700,000 $ 775,000 $ — $ (625,000 ) $ 3,850,000 10-year U.S. Treasury note futures — 845,100 (495,100 ) — 350,000 Purchased put options on 10-year U.S. Treasury note futures 1,650,000 2,540,000 (4,190,000 ) — — Sold call options on 10-year U.S. Treasury note futures 1,000,000 2,450,000 (3,450,000 ) — — Purchased call options on 10-year U.S. Treasury note futures 1,000,000 2,400,000 (2,700,000 ) — 700,000 Commitments to purchase (sell) MBS, net 725,000 4,315,000 (3,930,000 ) — 1,110,000 Cash Collateral Posted for Derivative Instruments and Other Financial Instruments The following table presents information about the cash collateral posted and received by the Company in respect of its derivative and other financial instruments, which is included in the line item “deposits, net” in the accompanying consolidated balance sheets, for the dates indicated: June 30, 2018 December 31, 2017 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 54,200 $ 46,218 U.S. Treasury note futures (cash initial margin) 7,350 6,960 Unsettled MBS trades and TBA commitments, net — 5,925 Total cash collateral posted $ 61,550 $ 59,103

Offsetting of Financial Assets

Offsetting of Financial Assets and Liabilities	6 Months Ended
	Jun. 30, 2018
Offsetting [Abstract]
Offsetting of Financial Assets and Liabilities	Note 6. Offsetting of Financial Assets and Liabilities The agreements that govern certain of the Company’s derivative instruments and collateralized short-term financing arrangements provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The Company presents derivative assets and liabilities as well as collateralized short-term financing arrangements on a gross basis. Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate derivative instruments are included in the line item “deposits, net” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange-traded derivative instrument is legally characterized as the daily settlement of the derivative instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the interest rate swap derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period. The following tables present information, as of the dates indicated, about the Company’s derivative instruments, short-term borrowing arrangements, and associated collateral, including those subject to master netting (or similar) arrangements: As of June 30, 2018 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: Interest rate swaps $ 5,044 $ — $ 5,044 $ — $ — $ 5,044 10-year U.S. Treasury note futures 1,422 — 1,422 — — 1,422 TBA commitments 3,455 — 3,455 (234 ) — 3,221 Total derivative instruments 9,921 — 9,921 (234 ) — 9,687 Total assets $ 9,921 $ — $ 9,921 $ (234 ) $ — $ 9,687 Liabilities: Derivative instruments: TBA commitments $ 234 $ — $ 234 $ (234 ) $ — $ — Total derivative instruments 234 — 234 (234 ) — — Repurchase agreements 3,752,582 — 3,752,582 (3,752,582 ) — — Total liabilities $ 3,752,816 $ — $ 3,752,816 $ (3,752,816 ) $ — $ — As of December 31, 2017 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: TBA commitments $ 763 $ — $ 763 $ — $ — $ 763 Total derivative instruments 763 — 763 — — 763 Total assets $ 763 $ — $ 763 $ — $ — $ 763 Liabilities: Derivative instruments: Interest rate swaps $ 3,338 $ — $ 3,338 $ — $ (3,338 ) $ — U.S. Treasury note futures 1,341 — 1,341 — (1,341 ) — TBA commitments 154 — 154 — (154 ) — Total derivative instruments 4,833 — 4,833 — (4,833 ) — Repurchase agreements 3,667,181 — 3,667,181 (3,667,181 ) — — Total liabilities $ 3,672,014 $ — $ 3,672,014 $ (3,667,181 ) $ (4,833 ) $ — (1) Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets. (2) Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7. Fair Value Measurements Fair Value of Financial Instruments The accounting principles related to fair value measurements define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company at the measurement date; Level 2 Inputs - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 Inputs - Unobservable inputs for the asset or liability, including significant judgments made by the Company about the assumptions that a market participant would use. The Company measures the fair value of the following assets and liabilities: Mortgage-backed securities Agency MBS - The Company’s investments in agency MBS are classified within Level 2 of the fair value hierarchy. Inputs to fair value measurements of the Company’s investments in agency MBS include price estimates obtained from third-party pricing services. In determining fair value, third-party pricing services use a market approach. The inputs used in the fair value measurements performed by the third-party pricing services are based upon readily observable transactions for securities with similar characteristics (such as issuer/guarantor, coupon rate, stated maturity, and collateral pool characteristics) occurring on the measurement date. The Company makes inquiries of the third-party pricing sources to understand the significant inputs and assumptions used to determine prices. The Company reviews the various third-party fair value estimates and performs procedures to validate their reasonableness, including comparison to recent trading activity for similar securities and an overall review for consistency with market conditions observed as of the measurement date. Derivative instruments Exchange-traded derivative instruments - Exchange-traded derivative instruments, which include U.S. Treasury note futures, Eurodollar futures, interest rate swap futures, and options on futures, are classified within Level 1 of the fair value hierarchy as they are measured using quoted prices for identical instruments in liquid markets. Interest rate swaps - Interest rate swaps are classified within Level 2 of the fair value hierarchy. The fair values of the Company’s centrally cleared interest rate swaps are measured using the daily valuations reported by the clearinghouse through which the instrument was cleared. In performing its end-of-day valuations, the clearinghouse constructs forward interest rate curves (for example, three-month LIBOR forward rates) from its specific observations of that day’s trading activity. The clearinghouse uses the applicable forward interest rate curve to develop a market-based forecast of future remaining contractually required cash flows for each interest rate swap. Each market-based cash flow forecast is then discounted using the overnight index swap rate curve (sourced from the Federal Reserve Bank of New York) to determine a net present value amount which represents the instrument’s fair value. The Company reviews the valuations reported by the clearinghouse on an ongoing basis and performs procedures using readily available market data to independently verify their reasonableness. Forward-settling purchases and sales of TBA securities – Forward-settling purchases and sales of TBA securities are classified within Level 2 of the fair value hierarchy. The fair value of each forward-settling TBA contract is measured using price estimates obtained from a third-party pricing service, which are based upon readily observable transaction prices occurring on the measurement date for forward-settling contracts to buy or sell TBA securities with the same guarantor, contractual maturity, and coupon rate for delivery on the same forward settlement date as the contract under measurement. Other Long-term unsecured debt - As of June 30, 2018 and December 31, 2017, the carrying value of the Company’s long-term unsecured debt was $73,992 and $73,880, respectively, net of unamortized debt issuance costs, and consists of Senior Notes and trust preferred debt issued by the Company. The Company’s estimate of the fair value of long-term unsecured debt is $69,375 and $70,314 as of June 30, 2018 and December 31, 2017, respectively. The Company’s Senior Notes, which are publicly traded on the New York Stock Exchange, are classified within Level 1 of the fair value hierarchy. Trust preferred debt is classified within Level 2 of the fair value hierarchy as the fair value is estimated based on the quoted prices of the Company’s publicly traded Senior Notes. Investments in equity securities of non-public companies and investment funds – As of June 30, 2018, the Company had investment in equity securities and investment funds measured at fair value of $6,174, which is included in the line item “other assets” in the accompanying consolidated balance sheets. ASU No. 2016-01, effective January 1, 2018, requires entities to measure investments in equity securities at fair value, unless fair value measurement is impractical, with changes in fair value recognized in current period earnings. Upon the adoption of ASU No. 2016-01, the Company recognized a cumulative-effect increase of $4,059 (net of taxes) in stockholders’ equity representing, as of January 1, 2018, the excess of fair value over historical cost of its investments in equity securities that were previously carried at their historical cost (net of impairments). As of December 31, 2017, the Company had investments in equity securities and investment funds with a carrying amount of $1,675, which are included in the line item “other assets” in the accompanying consolidated balance sheets. As of December 31, 2017, $439 of these investments represented securities for which the Company elected the “fair value option” at the time that the securities were initially recognized on the Company’s consolidated balance sheets. The remaining $1,236 in investments in equity securities of non-public companies and investment funds as of December 31, 2017 were measured at cost, net of impairments. The Company’s estimate of the total fair value of investments in equity securities and investment funds was $5,801 as of December 31, 2017. Investments in equity securities and investment funds are classified within Level 3 of the fair value hierarchy. The fair values of the Company’s investments in equity securities and investment funds are not readily determinable. Accordingly, for its investments in equity securities, the Company estimates fair value by estimating the enterprise value of the investee which it then “waterfalls” over the investee’s securities in the order of their preference relative to one another. To estimate the enterprise value of the investee, the Company uses traditional valuation methodologies based on income and market approaches, including the consideration of recent investments in, or tender offers for, the equity securities of the investee, a discounted cash flow analysis and a comparable guideline public company valuation. The primary unobservable input used in estimating the fair value of an equity security of a non-public company is the discount factor, representing a discount for lack of marketability and control, applied to the fair value of the investee’s net assets. As of June 30, 2018 and December 31, 2017, the discount factor for lack of marketability and control is estimated to be 8 percent and 20 percent, respectively. For its investments in investment funds, the Company estimates fair value based upon the investee’s net asset value per share. Financial assets and liabilities for which carrying value approximates fair value - Cash and cash equivalents, deposits, receivables, repurchase agreements, payables, and other assets and liabilities are reflected in the consolidated balance sheets at their cost, which, due to the short-term nature of these instruments and their limited inherent credit risk, approximates fair value. Fair Value Hierarchy Financial Instruments Measured at Fair Value on a Recurring Basis The following tables set forth financial instruments measured at fair value by level within the fair value hierarchy as of June 30, 2018 and December 31, 2017. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,050,458 $ — $ 4,050,458 $ — Private-label MBS 61 — — 61 Total MBS 4,050,519 — 4,050,458 61 Derivative assets 9,921 1,422 8,499 — Derivative liabilities (234 ) — (234 ) — Other assets 6,174 — — 6,174 Total $ 4,066,380 $ 1,422 $ 4,058,723 $ 6,235 December 31, 2017 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,054,424 $ — $ 4,054,424 $ — Private-label MBS 76 — — 76 Total MBS 4,054,500 — 4,054,424 76 Derivative assets 763 — 763 — Derivative liabilities (4,833 ) (1,341 ) (3,492 ) — Other assets 439 — — 439 Total $ 4,050,869 $ (1,341 ) $ 4,051,695 $ 515 There were no transfers of financial instruments into or out of Levels 1, 2 or 3 during the three and six months ended June 30, 2018 or the year ended December 31, 2017. Level 3 Financial Assets and Liabilities The table below sets forth an attribution of the change in the fair value of the Company’s Level 3 investments that are measured at fair value on a recurring basis for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 5,926 $ 1,976 $ 515 $ 1,799 Addition of certain investments in equity securities as of January 1, 2018 — — 5,362 — Included in investment gain (loss), net 312 (101 ) 364 61 Purchases — — — — Sales — (1,268 ) — (1,268 ) Payments, net (13 ) (32 ) (20 ) (54 ) Accretion of discount 10 43 14 80 Ending balance $ 6,235 $ 618 $ 6,235 $ 618 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ 312 $ (145 ) $ 364 $ 3

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes Arlington Asset is subject to taxation as a corporation under Subchapter C of the Internal Revenue Code of 1986, as amended (the “Code”). As of June 30, 2018, the Company had estimated net operating loss (“NOL”) carryforwards of $40,318 that can be used to offset future taxable ordinary income. The Company’s NOL carryforwards begin to expire in 2027. As of June 30, 2018, the Company had estimated net capital loss (“NCL”) carryforwards of $392,655 that can be used to offset future net capital gains. The scheduled expirations of the Company’s NCL carryforwards are $136,840 in 2019, $102,927 in 2020, $70,319 in 2021, $4,191 in 2022 and $78,378 in 2023. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities pursuant to the application of GAAP and their respective tax bases and are stated at tax rates expected to be in effect when the taxes are actually paid or recovered. Deferred tax assets are also recognized for NOL carryforwards and NCL carryforwards. On December 22, 2017, the President signed the Tax Cuts and Jobs Act, which provides for substantial changes to the federal taxation of individuals and corporations with an effective date of January 1, 2018. For corporate taxpayers, the federal income tax rate was lowered from 35.0% to 21.0%. The effects of changes in tax laws and rates on deferred tax assets and liabilities are required to be recognized in the period in which the legislation is enacted as a discrete item within the income tax provision. Accordingly, the Company recorded the effect of the decrease in the federal tax rate on the Company’s deferred tax assets and liabilities as of December 31, 2017. Through December 31, 2017, the Company was subject to federal alternative minimum tax (“AMT”) on its taxable income and gains that are not offset by its NOL and NCL carryforwards with any AMT credit carryforwards available to offset future regular tax liabilities. As part of the Tax Cuts and Jobs Act, the corporate AMT is repealed for tax years beginning after December 31, 2017 with any AMT credit carryforward after that date continuing to be available to offset a taxpayer’s future regular tax liability. In addition, for tax years beginning in 2018, 2019 and 2020, to the extent that AMT credit carryforwards exceed the regular tax liability, 50% of the excess AMT credit carryforwards would be refundable in that year with any remaining AMT credit carryforwards fully refundable in 2021. As a result, the realizability of the Company’s AMT credit carryforward is now certain and will now be realized as either a cash refund or as an offset to future regular tax liabilities or a combination of both. Accordingly, the Company reclassified its AMT credit carryforward from net deferred tax assets to a receivable as of December 31, 2017. As of June 30, 2018 and December 31, 2017, the Company had AMT credit carryforwards of $9,133 included in other assets on the accompanying consolidated balance sheets. A valuation allowance is provided against the deferred tax asset if, based upon the Company’s evaluation, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is incorporated into the determination of whether a valuation allowance for deferred tax assets is appropriate. Items considered in the valuation allowance determination include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carry-forward periods and the expected timing of the reversal of temporary differences. As of June 30, 2018 and December 31, 2017, the Company determined that it should record a full valuation allowance against its deferred tax assets that are capital in nature, which consists of its NCL carryforwards and temporary GAAP to tax differences that are expected to result in capital losses in future periods. As of June 30, 2018 and December 31, 2017, the Company determined that it should not record any valuation allowance against its deferred tax assets that are ordinary in nature, which consists of its NOL carryforwards and temporary GAAP to tax differences that are expected to result in deductions from ordinary income in future periods. For the three and six months ended June 30, 2018, the Company recorded an increase to its valuation allowance of $5,425 and $32,330, respectively. Deferred tax assets and liabilities consisted of the following as of the dates indicated: June 30, 2018 December 31, 2017 Ordinary deferred tax assets: NOL carry forward $ 10,378 $ 15,619 Deferred net loss on designated hedges — 4,381 Stock-based compensation 1,836 1,999 Other, net — 19 Total ordinary deferred tax assets 12,214 22,018 Ordinary deferred tax liabilities: Deferred net gain on designated hedges (605 ) — Net unrealized gain on designated hedges (35,282 ) (21,218 ) Other, net (338 ) — Total ordinary deferred tax liabilities (36,225 ) (21,218 ) Ordinary deferred tax (liabilities) assets, net (24,011 ) 800 Capital deferred tax assets: NCL carry forward 101,069 80,895 Net unrealized loss on investments 35,587 23,431 Valuation allowance (136,656 ) (104,326 ) Total capital deferred tax assets, net — — Total deferred tax (liabilities) assets, net $ (24,011 ) $ 800 On May 30, 2018, the Company received an assessment of $9,380 from Arlington County, Virginia for a business, professional and occupation license (“BPOL”) tax for calendar year 2017. The BPOL tax is a local privilege tax on a business’ gross receipts for conducting business activities subject to licensure within Arlington County. The Company has not been assessed or paid any such BPOL tax prior to calendar year 2017. The Company does not believe it is subject to the BPOL tax and has filed an administrative appeal with Arlington County. The Company intends to fully contest the assessment. As of June 30, 2018, the Company does not believe that it is probable that is has incurred a BPOL tax liability.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 9. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net income or loss applicable to common stock by the weighted-average number of common shares outstanding for the respective period. Diluted earnings per share includes the impact of dilutive securities such as unvested shares of restricted stock and performance share units. The following tables present the computations of basic and diluted earnings (loss) per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (Shares in thousands) 2018 2017 2018 2017 Basic weighted-average common shares outstanding 28,210 24,319 28,204 23,987 Performance share units and unvested restricted stock — — — — Diluted weighted-average common shares outstanding 28,210 24,319 28,204 23,987 Net loss attributable to common stock $ (3,757 ) $ (17,963 ) $ (60,277 ) $ (12,709 ) Basic loss per common share $ (0.13 ) $ (0.74 ) $ (2.14 ) $ (0.53 ) Diluted loss per common share $ (0.13 ) $ (0.74 ) $ (2.14 ) $ (0.53 ) The diluted loss per share for the three and six months ended June 30, 2018 did not include the antidilutive effect of 252,962 and 242,925 shares of unvested shares of restricted stock and performance share units, respectively. The diluted loss per share for the three and six months ended June 30, 2017 did not include the antidilutive effect of 233,418 and 239,248 shares of unvested shares of restricted stock and performance share units, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Equity	Note 10. Stockholders’ Equity Common Stock The Company has authorized share capital of 450,000,000 shares of Class A common stock, par value $0.01 per share, and 100,000,000 shares of Class B common stock, par value $0.01 per share. Holders of the Class A and Class B common stock are entitled to one vote and three votes per share, respectively, on all matters voted upon by the shareholders. Shares of Class B common stock are convertible into shares of Class A common stock on a one-for-one basis at the option of the Company in certain circumstances including either (i) upon sale or other transfer, or (ii) at the time the holder of such shares of Class B common stock ceases to be employed by the Company. During the year ended December 31, 2017, holders of the Company's Class B common stock converted an aggregate of 20,256 shares of Class B common stock into 20,256 shares of Class A common stock. As of December 31, 2017, all remaining shares of Class B common stock had been exchanged for shares of the Company’s Class A common stock. Common Stock Dividends Pursuant to the Company’s variable dividend policy for its common stock, the Board of Directors evaluates common stock dividends on a quarterly basis and, in its sole discretion, approves the payment of dividends. The Company’s common stock dividend payments, if any, may vary significantly from quarter to quarter. The Board of Directors has approved and the Company declared and paid the following dividends on its common stock to date in 2018: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date June 30 $ 0.375 June 14 June 29 July 31 March 31 0.550 March 15 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends for 2017: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.550 December 14 December 29 January 31, 2018 September 30 0.550 September 14 September 29 October 31 June 30 0.550 June 16 June 30 July 31 March 31 0.625 March 14 March 31 April 28 Common Equity Distribution Agreements On May 24, 2013, the Company entered into separate common equity distribution agreements (the “Prior Equity Distribution Agreements”) with equity sales agents RBC Capital Markets, LLC, JMP Securities LLC, Ladenburg Thalmann & Co. Inc. and MLV & Co. LLC pursuant to which the Company may offer and sell, from time to time, up to 1,750,000 shares of the Company’s Class A common stock. On February 23, 2017, the Company terminated the Prior Equity Distribution Agreements. On February 22, 2017, the Company entered into new separate common equity distribution agreements (the “New Equity Distribution Agreements”) with equity sales agents JMP Securities LLC, FBR Capital Markets & Co., JonesTrading Institutional Services LLC and Ladenburg Thalmann & Co. Inc. pursuant to which the Company may offer and sell, from time to time, up to 6,000,000 shares of the Company’s Class A common stock. Pursuant to the common equity distribution agreements, shares of the Company’s common stock may be offered and sold through the equity sales agents in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange or, subject to the terms of a written notice from the Company, in privately negotiated transactions. The following table provides information about the issuances of common stock under the equity distribution agreements for the periods indicated: Class A Common Stock Issuances Six Months Ended June 30, 2018 Year Ended December 31, 2017 Shares issued 66,989 4,472,083 Weighted average public offering price $ 10.96 $ 13.88 Net proceeds (1) $ 688 $ 61,213 (1) Net of selling commissions and expenses. As of June 30, 2018, the Company had 1,461,728 shares of Class A common stock available for sale under the New Equity Distribution Agreements. Common Share Repurchase Program The Company’s Board of Directors authorized a share repurchase program pursuant to which the Company may repurchase up to 2,000,000 shares of Class A common stock (the “Repurchase Program”). Repurchases under the Repurchase Program may be made from time to time on the open market and in private transactions at management’s discretion in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares of Class A common stock to be repurchased will depend upon market conditions and other factors. The Repurchase Program is funded using the Company’s cash on hand and cash generated from operations. The Repurchase Program has no expiration date and may be suspended or terminated at any time without prior notice. There were no shares repurchased by the Company under the Repurchase Program during the three and six months ended June 30, 2018 and the year ended December 31, 2017. As of June 30, 2018, there remain available for repurchase 1,951,305 shares of Class A common stock under the Repurchase Program. Preferred Stock The Company has authorized share capital of 2,000,000 shares of 7.00% Series B Cumulative Perpetual Redeemable Preferred Stock (the “Series B Preferred Stock”), par value of $0.01 per share, and 100,000 authorized and unissued shares designated as Series A Preferred Stock, and 22,900,000 shares of undesignated preferred stock. The Company’s Board of Directors has the authority, without further action by the shareholders, to issue additional preferred stock in one or more series and to fix the terms and rights of the preferred stock. In May 2017, the Company completed a public offering in which 135,000 shares of its Series B Preferred Stock were issued to the public at a public offering price of $24.00 per share for proceeds net of underwriting discounts and commissions and expenses of $3,018. The Series B Preferred Stock is publicly traded on the New York Stock Exchange under the ticker symbol “AI PrB.” The Series B Preferred Stock has no stated maturity, is not subject to any sinking fund and will remain outstanding indefinitely unless repurchased or redeemed by the Company. Holders of Series B Preferred Stock have no voting rights, except under limited conditions, and are entitled to receive a cumulative cash dividend at a rate of 7.00% per annum of their $25.00 per share liquidation preference before holders of common stock are entitled to receive any dividends. Shares of Series B Preferred Stock are redeemable at $25.00 per share, plus accumulated and unpaid dividends (whether or not authorized or declared) exclusively at our option commencing on May 12, 2022 or earlier upon the occurrence of a change in control. Dividends are payable quarterly in arrears on the 30th day of each December, March, June and September. We have declared and paid all required quarterly dividends on our Series B Preferred Stock to date in 2018. Preferred Equity Distribution Agreements On May 16, 2017, the Company entered into an equity distribution agreement (the “Series B Preferred Equity Distribution Agreement”) with JonesTrading Institutional Services LLC (the “Series B Preferred Equity Agent”), pursuant to which the Company may offer and sell, from time to time, up to 1,865,000 shares of the Company’s Series B Preferred Stock. Pursuant to the Series B Preferred Equity Distribution Agreement, shares of the Company’s Series B Preferred stock may be offered and sold through the Series B Preferred Equity Sales Agent in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange or, subject to the terms of a written notice from the Company, in privately negotiated transactions. The following table provides information about the issuances of preferred stock under the Series B Preferred Equity Distribution Agreement for the periods indicated: Series B Preferred Stock Issuances Six Months Ended June 30, 2018 Year Ended December 31, 2017 Shares issued 37,461 168,291 Weighted average public offering price $ 24.82 $ 24.95 Net proceeds (1) $ 899 $ 4,090 (1) Net of selling commissions and expenses. As of June 30, 2018, the Company had 1,659,248 shares of Series B Preferred stock available for sale under the Series B Preferred Equity Distribution Agreement. Shareholder Rights Agreement On June 1, 2009, the Board of Directors approved a shareholder rights agreement (“Rights Plan”) and the Company’s shareholders approved the Rights Plan at its annual meeting of shareholders on June 2, 2010. On April 9, 2018, the Board of Directors approved a first amendment to the Rights Plan (“First Amendment”) to extend the term for an additional three years and the Company’s shareholders approved the First Amendment at its annual meeting of shareholders on June 14, 2018. Under the terms of the Rights Plan, in general, if a person or group acquires or commences a tender or exchange offer for beneficial ownership of 4.9% or more of the outstanding shares of our Class A common stock upon a determination by our Board of Directors (an “Acquiring Person”), all of our other Class A and Class B common shareholders will have the right to purchase securities from us at a discount to such securities’ fair market value, thus causing substantial dilution to the Acquiring Person. The Board of Directors adopted the Rights Plan in an effort to protect against a possible limitation on the Company’s ability to use its NOL carryforwards, NCL carryforwards, and built-in losses under Sections 382 and 383 of the Code. The Company’s ability to use its NOLs, NCLs and built-in losses would be limited if it experienced an “ownership change” under Section 382 of the Code. In general, an “ownership change” would occur if there is a cumulative change in the ownership of the Company’s common stock of more than 50% by one or more “5% shareholders” during a three-year period. The Rights Plan was adopted to dissuade any person or group from acquiring 4.9% or more of the Company’s outstanding Class A common stock, each, an Acquiring Person, without the approval of the Board of Directors and triggering an “ownership change” as defined by Section 382. The Rights Plan, as amended, and any outstanding rights will expire at the earliest of (i) June 4, 2022, (ii) the time at which the rights are redeemed or exchanged pursuant to the Rights Plan, (iii) the repeal of Section 382 and 383 of the Code or any successor statute if the Board of Directors determines that the Rights Plan is no longer necessary for the preservation of the applicable tax benefits, or (iv) the beginning of a taxable year to which the Board of Directors determines that no applicable tax benefits may be carried forward.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Cash Equivalents	Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less. As of June 30, 2018 and December 31, 2017, approximately 98% of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities backed by the U.S. government.
Investment Security Purchases and Sales	Investment Security Purchases and Sales Purchases and sales of investment securities are recorded on the settlement date of the transfer unless the trade qualifies as a “regular-way” trade and the associated commitment qualifies for an exemption from the accounting guidance applicable to derivative instruments. A regular-way trade is an investment security purchase or sale transaction that is expected to settle within the period of time following the trade date that is prevalent or traditional for that specific type of security. Any amounts payable or receivable for unsettled security trades are recorded as “sold securities receivable” or “purchased securities payable” in the consolidated balance sheets.
Interest Income Recognition for Investments in Agency MBS	Interest Income Recognition for Investments in Agency MBS The Company recognizes interest income for its investments in agency MBS by applying the “interest method” permitted by GAAP, whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in agency MBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the effective interest rate on the remaining security balance is unaffected.
Other Significant Accounting Policies	Other Significant Accounting Policies Certain of the Company’s other significant accounting policies are summarized in the following notes: Investments in agency MBS, subsequent measurement Note 3 Borrowings Note 4 To-be-announced agency MBS transactions, including “dollar rolls” Note 5 Derivative instruments Note 5 Balance sheet offsetting Note 6 Fair value measurements Note 7 Refer to the Company’s 2017 Annual Report on Form 10-K for a complete inventory and summary of the Company’s significant accounting policies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements and their actual or expected effect on the Company’s consolidated financial statements: Standard Description Date of Adoption Effect on the Consolidated Financial Statements Recently Adopted Accounting Guidance Accounting Standards Update (“ASU”) No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date This amendment defers the effective date of ASU No. 2014-09 for all entities by one year. ASU No. 2014-09 requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue recognition with respect to financial instruments is not within the scope of ASU No. 2014-09. January 1, 2018 The adoption of ASU No. 2015-14 did not impact the Company’s consolidated financial statements. ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) This amendment makes targeted changes to certain aspects of guidance applicable to financial assets and financial liabilities. The amendment primarily affects accounting for certain equity investments, financial liabilities measured under the fair value option, and certain financial instrument presentation and disclosure requirements. Accounting for investments in debt securities and financial liabilities not measured under the fair value option is largely unaffected by this amendment. January 1, 2018 ASU No. 2016-01 requires entities to measure investments in equity securities at fair value, unless fair value measurement is impractical, with changes in fair value recognized in current period earnings. Upon the adoption of ASU No. 2016-01, the Company recognized a cumulative-effect increase of $4,059 (net of taxes) in stockholders’ equity representing, as of January 1, 2018, the excess of fair value over historical cost of its investments in equity securities that were previously carried at their historical cost (net of impairments). Subsequent to January 1, 2018, all changes in the estimated fair value of such instruments will be recognized in net income. ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) This amendment was issued to reduce diversity in practice with respect to eight various statement of cash flow reporting issues for which existing GAAP is either unclear or does not provide specific guidance. January 1, 2018 The adoption of ASU No. 2016-15 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU No. 2016-02, Leases (Topic 842) This amendment replaces the existing lease accounting model with a revised model. The primary change effectuated by the revised lease accounting model is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. January 1, 2019 The primary impact of the adoption of ASU No. 2016-02 will be the recognition of lease liabilities and associated right-of-use assets on the Company’s balance sheet. The Company does not expect the adoption of ASU No. 2016-02 will have a material effect on the timing or amount of periodic lease expense recognized in net income. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 606) The amendments in this update require financial assets measured at amortized cost as well as available-for-sale debt securities to be measured for impairment on the basis of the net amount expected to be collected. Credit losses are to be recognized through an allowance for credit losses, which differs from the direct write-down of the amortized cost basis currently required for other-than-temporary impairments of investments in debt securities. This update also makes substantial changes to the manner in which interest income is to be recognized for financial assets acquired with a more-than-insignificant amount of credit deterioration since origination. This update will not affect the accounting for investments in debt securities that are classified as trading securities. January 1, 2019 As of June 30, 2018, all of the Company’s investments in debt securities are classified as trading securities. Accordingly, the Company does not expect ASU No. 2016-13 to have a material impact on its consolidated financial statements. ASU No. 2017-08, Premium Amortization of Purchased Callable Debt Securities (Subtopic 310-20) This amendment requires purchase premiums for investments in debt securities that are noncontingently callable by the issuer (at a fixed price and preset date) to be amortized to the earliest call date. Previously, purchase premiums for such investments were permitted to be amortized to the instrument’s maturity date. January 1, 2020 Investments in prepayable financial assets, such as residential MBS, for which the embedded call options are not held by the issuer are not within the scope of ASU No. 2017-08. Accordingly, the Company does not expect the adoption of ASU No. 2017-08 to have a material effect on its consolidated financial statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) This update made several targeted amendments to existing GAAP with the objectives of facilitating (i) financial reporting that more closely reflects entities’ risk management strategies and (ii) greater ease of understanding and interpreting the effects of hedge accounting on an entities’ reported results. January 1, 2019 Hedge accounting pursuant to GAAP is an elective, rather than a required, accounting model. The Company does not currently elect to apply hedge accounting and, at this time, does not plan to elect to apply hedge accounting in the future. Accordingly, at this time, the Company does not expect ASU No. 2017-12 will have an effect on its consolidated financial statements.
Derivative Instruments	In the normal course of its operations, the Company is a party to financial instruments that are accounted for as derivative instruments. Derivative instruments are recorded at fair value as either “derivative assets” or “derivative liabilities” in the consolidated balance sheets, with all periodic changes in fair value reflected as a component of “investment gain (loss), net” in the consolidated statements of comprehensive income. Cash receipts or payments related to derivative instruments are classified as investing activities within the consolidated statements of cash flows. In addition to interest rate derivatives that are used for interest rate risk management, the Company is a party to derivative instruments that economically serve as investments, such as forward commitments to purchase fixed-rate “pass-through” agency MBS on a non-specified pool basis, which are known as to-be-announced (“TBA”) securities. A TBA security is a forward commmitment for the purchase or sale of a fixed-rate agency MBS at a predetermined price, face amount, issuer, coupon, and stated maturity for settlement on an agreed upon future date. The specific agency MBS that will be delivered to satisfy the TBA trade is not known at the inception of the trade. The Company accounts for TBA securities as derivative instruments because the Company cannot assert that it is probable at inception and throughout the term of an individual TBA commitment that its settlement will result in physical delivery of the underlying agency MBS, or the individual TBA commitment will not settle in the shortest time period possible.
Derivatives, Offsetting of Financial Assets and Liabilities	The agreements that govern certain of the Company’s derivative instruments and collateralized short-term financing arrangements provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The Company presents derivative assets and liabilities as well as collateralized short-term financing arrangements on a gross basis. Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate derivative instruments are included in the line item “deposits, net” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange-traded derivative instrument is legally characterized as the daily settlement of the derivative instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the interest rate swap derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period.
Fair Value of Financial Instruments	The accounting principles related to fair value measurements define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company at the measurement date; Level 2 Inputs - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 Inputs - Unobservable inputs for the asset or liability, including significant judgments made by the Company about the assumptions that a market participant would use. The Company measures the fair value of the following assets and liabilities:
Repurchase Agreements	The Company finances the purchase of MBS through repurchase agreements, which are accounted for as collateralized borrowing arrangements. In a repurchase transaction, the Company sells MBS to a counterparty under a master repurchase agreement in exchange for cash and concurrently agrees to repurchase the same security at a future date in an amount equal to the cash initially exchanged plus an agreed-upon amount of interest. MBS sold under agreements to repurchase remain on the Company’s consolidated balance sheets because the Company maintains effective control over such securities throughout the duration of the arrangement. Throughout the contractual term of a repurchase agreement, the Company recognizes a “repurchase agreement” liability on its consolidated balance sheets to reflect the obligation to repay to the counterparty the proceeds received upon the initial transfer of the MBS. The difference between the proceeds received by the Company upon the initial transfer of the MBS and the contractually agreed-upon repurchase price is recognized as interest expense over the term of the repurchase arrangement on a level-yield basis.
Agency MBS
Investment Security Purchases and Sales	The Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of June 30, 2018 and December 31, 2017, the Company had $4,050,458 and $4,054,424, respectively, of fair value in agency MBS classified as trading securities.

Investments in Agency MBS (Tabl

Investments in Agency MBS (Tables)	6 Months Ended
	Jun. 30, 2018
Agency MBS
Additional Information Realized Gain Loss on Investments	The following table provides additional information about the gains and losses recognized as a component of “investment gain (loss), net” in the Company’s consolidated statements of comprehensive income for the periods indicated with respect to investments in agency MBS classified as trading securities: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ (17,876 ) $ 13,474 $ (73,220 ) $ 11,191 Agency MBS sold during the period (3,005 ) 2,343 (36,006 ) 397 Total $ (20,881 ) $ 15,817 $ (109,226 ) $ 11,588

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Repurchase Agreements	As of June 30, 2018 and December 31, 2017, the Company had no amount at risk with a single repurchase agreement counterparty or lender greater than 10% of equity. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of the dates indicated: June 30, 2018 December 31, 2017 Pledged with agency MBS: Repurchase agreements outstanding $ 3,752,582 $ 3,667,181 Agency MBS collateral, at fair value 3,959,656 3,858,815 Net amount (1) 207,074 191,634 Weighted-average rate 2.12 % 1.56 % Weighted-average term to maturity 15.8 days 12.6 days (1) Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three and six months ended June 30, 2018 and 2017: June 30, 2018 June 30, 2017 Weighted-average outstanding balance during the three months ended $ 3,619,483 $ 4,125,631 Weighted-average rate during the three months ended 1.96 % 1.08 % Weighted-average outstanding balance during the six months ended $ 3,675,051 $ 4,025,321 Weighted-average rate during the six months ended 1.80 % 1.00 %
Schedule of Long-term Unsecured Debt Instruments	As of June 30, 2018 and December 31, 2017, the Company had $73,992 and $73,880, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $1,308 and $1,420, respectively. The Company’s long-term debentures consisted of the following as of the dates indicated: June 30, 2018 December 31, 2017 Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Outstanding Principal $ 35,300 $ 25,000 $ 15,000 $ 35,300 $ 25,000 $ 15,000 Annual Interest Rate 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % Interest Payment Frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Weighted-Average Interest Rate 6.75 % 6.625 % 5.10 % 6.75 % 6.625 % 4.11 % Maturity March 15, 2025 May 1, 2023 2033 - 2035 March 15, 2025 May 1, 2023 2033 - 2035 Early Redemption Date March 15, 2018 May 1, 2016 2008 - 2010 March 15, 2018 May 1, 2016 2008 - 2010

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Schedule of Derivative Instruments	The following table presents the fair value of the Company’s derivative instruments as of the dates indicated: June 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Interest rate swaps $ 5,044 $ — $ — $ (3,338 ) 5-year U.S. Treasury note futures — — — (20 ) 10-year U.S. Treasury note futures 1,422 — — (1,321 ) TBA commitments 3,455 (234 ) 763 (154 ) Total $ 9,921 $ (234 ) $ 763 $ (4,833 )
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The following tables provide information about the derivative gains and losses recognized within the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest rate derivatives: Interest rate swaps: Net interest income (expense) (1) $ 2,483 $ (5,293 ) $ 1,667 $ (10,702 ) Unrealized gains (losses), net 3,780 (26,991 ) 54,637 (18,824 ) Gains realized upon early termination 10,314 65 20,483 696 Total interest rate swap gains (losses), net 16,577 (32,219 ) 76,787 (28,830 ) U.S. Treasury note futures, net 6,160 (2,176 ) 18,480 (2,041 ) Options on U.S. Treasury note futures, net — (1,736 ) — (6,153 ) Total interest rate derivative gains (losses), net 22,737 (36,131 ) 95,267 (37,024 ) TBA and specified agency MBS commitments: TBA dollar roll income (2) 6,742 4,298 13,385 7,696 Other (losses) gains on agency MBS commitments, net (13,427 ) 155 (52,446 ) (45 ) Total (losses) gains on agency MBS commitments, net (6,685 ) 4,453 (39,061 ) 7,651 Total derivative gains (losses), net $ 16,052 $ (31,678 ) $ 56,206 $ (29,373 ) (1) Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements. (2) Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase.
Derivative Instrument Volume of Activity	The following tables summarize the volume of activity, in terms of notional amount, related to derivative instruments for the periods indicated: For the Three Months Ended June 30, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,525,000 $ 300,000 $ — $ (500,000 ) $ 3,325,000 10-year U.S. Treasury note futures 850,000 900,000 (1,050,000 ) — 700,000 Commitments to purchase (sell) MBS, net 1,415,000 3,865,000 (4,180,000 ) — 1,100,000 For the Three Months Ended June 30, 2017 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 375,000 $ — $ (125,000 ) $ 3,850,000 10-year U.S. Treasury note futures — 608,000 (258,000 ) — 350,000 Purchased put options on 10-year U.S. Treasury note futures 700,000 100,000 (800,000 ) — — Sold call options on 10-year U.S. Treasury note futures 350,000 300,000 (650,000 ) — — Purchased call options on 10-year U.S. Treasury note futures 350,000 1,500,000 (1,150,000 ) — 700,000 Commitments to purchase (sell) MBS, net 450,000 2,865,000 (2,205,000 ) — 1,110,000 For the Six Months Ended June 30, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 550,000 $ — $ (825,000 ) $ 3,325,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 1,850,000 (1,800,000 ) — 700,000 Commitments to purchase (sell) MBS, net 1,265,000 8,120,000 (8,285,000 ) — 1,100,000 For the Six Months Ended June 30, 2017 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,700,000 $ 775,000 $ — $ (625,000 ) $ 3,850,000 10-year U.S. Treasury note futures — 845,100 (495,100 ) — 350,000 Purchased put options on 10-year U.S. Treasury note futures 1,650,000 2,540,000 (4,190,000 ) — — Sold call options on 10-year U.S. Treasury note futures 1,000,000 2,450,000 (3,450,000 ) — — Purchased call options on 10-year U.S. Treasury note futures 1,000,000 2,400,000 (2,700,000 ) — 700,000 Commitments to purchase (sell) MBS, net 725,000 4,315,000 (3,930,000 ) — 1,110,000
Derivative Instruments and Other Financial Instrument Cash Collateral	The following table presents information about the cash collateral posted and received by the Company in respect of its derivative and other financial instruments, which is included in the line item “deposits, net” in the accompanying consolidated balance sheets, for the dates indicated: June 30, 2018 December 31, 2017 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 54,200 $ 46,218 U.S. Treasury note futures (cash initial margin) 7,350 6,960 Unsettled MBS trades and TBA commitments, net — 5,925 Total cash collateral posted $ 61,550 $ 59,103
TBA Commitments
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Schedule of Derivative Instruments	The following tables present information about the Company’s TBA commitments as of the dates indicated: June 30, 2018 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 4.0% 30-year MBS purchase commitments $ 100,000 $ 101,406 $ 101,906 $ 500 4.5% 30-year MBS purchase commitments 900,000 934,561 936,813 2,252 5.0% 30-year MBS purchase commitments 200,000 211,203 211,906 703 4.5% 30-year MBS sale commitments (100,000 ) (103,828 ) (104,062 ) (234 ) Total TBA commitments, net $ 1,100,000 $ 1,143,342 $ 1,146,563 $ 3,221 December 31, 2017 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 3.0% 15-year MBS purchase commitments $ 250,000 $ 254,873 $ 254,766 $ (107 ) 3.5% 30-year MBS purchase commitments 1,015,000 1,041,496 1,042,212 716 Total TBA commitments, net $ 1,265,000 $ 1,296,369 $ 1,296,978 $ 609
Interest Rate Swap
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Schedule of Derivative Instruments	The following table presents information about the Company’s interest rate swap agreements that were in effect as of June 30, 2018: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,050,000 1.53 % 2.34 % 0.81 % 2.0 $ 893 3 to less than 7 years 225,000 1.95 % 2.32 % 0.37 % 3.8 331 7 to less than 10 years 2,000,000 2.18 % 2.33 % 0.15 % 8.3 3,562 10 or more years 50,000 2.98 % 2.33 % (0.65 )% 29.7 258 Total / weighted-average $ 3,325,000 1.97 % 2.33 % 0.36 % 6.3 $ 5,044 The following table presents information about the Company’s interest rate swap agreements that were in effect as of December 31, 2017: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,300,000 1.28 % 1.51 % 0.23 % 1.8 $ (248 ) 3 to less than 7 years 700,000 1.87 % 1.48 % (0.39 )% 3.9 (454 ) 7 to 10 years 1,600,000 1.90 % 1.55 % (0.35 )% 8.3 (2,636 ) Total / weighted-average $ 3,600,000 1.67 % 1.52 % (0.15 )% 5.1 $ (3,338 )

Offsetting of Financial Asset22

Offsetting of Financial Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Offsetting [Abstract]
Offsetting of Financial Assets and Liabilities	The following tables present information, as of the dates indicated, about the Company’s derivative instruments, short-term borrowing arrangements, and associated collateral, including those subject to master netting (or similar) arrangements: As of June 30, 2018 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: Interest rate swaps $ 5,044 $ — $ 5,044 $ — $ — $ 5,044 10-year U.S. Treasury note futures 1,422 — 1,422 — — 1,422 TBA commitments 3,455 — 3,455 (234 ) — 3,221 Total derivative instruments 9,921 — 9,921 (234 ) — 9,687 Total assets $ 9,921 $ — $ 9,921 $ (234 ) $ — $ 9,687 Liabilities: Derivative instruments: TBA commitments $ 234 $ — $ 234 $ (234 ) $ — $ — Total derivative instruments 234 — 234 (234 ) — — Repurchase agreements 3,752,582 — 3,752,582 (3,752,582 ) — — Total liabilities $ 3,752,816 $ — $ 3,752,816 $ (3,752,816 ) $ — $ — As of December 31, 2017 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: TBA commitments $ 763 $ — $ 763 $ — $ — $ 763 Total derivative instruments 763 — 763 — — 763 Total assets $ 763 $ — $ 763 $ — $ — $ 763 Liabilities: Derivative instruments: Interest rate swaps $ 3,338 $ — $ 3,338 $ — $ (3,338 ) $ — U.S. Treasury note futures 1,341 — 1,341 — (1,341 ) — TBA commitments 154 — 154 — (154 ) — Total derivative instruments 4,833 — 4,833 — (4,833 ) — Repurchase agreements 3,667,181 — 3,667,181 (3,667,181 ) — — Total liabilities $ 3,672,014 $ — $ 3,672,014 $ (3,667,181 ) $ (4,833 ) $ — (1) Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets. (2) Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following tables set forth financial instruments measured at fair value by level within the fair value hierarchy as of June 30, 2018 and December 31, 2017. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,050,458 $ — $ 4,050,458 $ — Private-label MBS 61 — — 61 Total MBS 4,050,519 — 4,050,458 61 Derivative assets 9,921 1,422 8,499 — Derivative liabilities (234 ) — (234 ) — Other assets 6,174 — — 6,174 Total $ 4,066,380 $ 1,422 $ 4,058,723 $ 6,235 December 31, 2017 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,054,424 $ — $ 4,054,424 $ — Private-label MBS 76 — — 76 Total MBS 4,054,500 — 4,054,424 76 Derivative assets 763 — 763 — Derivative liabilities (4,833 ) (1,341 ) (3,492 ) — Other assets 439 — — 439 Total $ 4,050,869 $ (1,341 ) $ 4,051,695 $ 515
Change in Fair Value of Level 3 Investments that are Measured at Fair Value on Recurring Basis	The table below sets forth an attribution of the change in the fair value of the Company’s Level 3 investments that are measured at fair value on a recurring basis for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 5,926 $ 1,976 $ 515 $ 1,799 Addition of certain investments in equity securities as of January 1, 2018 — — 5,362 — Included in investment gain (loss), net 312 (101 ) 364 61 Purchases — — — — Sales — (1,268 ) — (1,268 ) Payments, net (13 ) (32 ) (20 ) (54 ) Accretion of discount 10 43 14 80 Ending balance $ 6,235 $ 618 $ 6,235 $ 618 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ 312 $ (145 ) $ 364 $ 3

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	Deferred tax assets and liabilities consisted of the following as of the dates indicated: June 30, 2018 December 31, 2017 Ordinary deferred tax assets: NOL carry forward $ 10,378 $ 15,619 Deferred net loss on designated hedges — 4,381 Stock-based compensation 1,836 1,999 Other, net — 19 Total ordinary deferred tax assets 12,214 22,018 Ordinary deferred tax liabilities: Deferred net gain on designated hedges (605 ) — Net unrealized gain on designated hedges (35,282 ) (21,218 ) Other, net (338 ) — Total ordinary deferred tax liabilities (36,225 ) (21,218 ) Ordinary deferred tax (liabilities) assets, net (24,011 ) 800 Capital deferred tax assets: NCL carry forward 101,069 80,895 Net unrealized loss on investments 35,587 23,431 Valuation allowance (136,656 ) (104,326 ) Total capital deferred tax assets, net — — Total deferred tax (liabilities) assets, net $ (24,011 ) $ 800

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Computations of Basic and Diluted Earnings (Loss) Per Share	The following tables present the computations of basic and diluted earnings (loss) per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (Shares in thousands) 2018 2017 2018 2017 Basic weighted-average common shares outstanding 28,210 24,319 28,204 23,987 Performance share units and unvested restricted stock — — — — Diluted weighted-average common shares outstanding 28,210 24,319 28,204 23,987 Net loss attributable to common stock $ (3,757 ) $ (17,963 ) $ (60,277 ) $ (12,709 ) Basic loss per common share $ (0.13 ) $ (0.74 ) $ (2.14 ) $ (0.53 ) Diluted loss per common share $ (0.13 ) $ (0.74 ) $ (2.14 ) $ (0.53 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Dividends Payable	The Board of Directors has approved and the Company declared and paid the following dividends on its common stock to date in 2018: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date June 30 $ 0.375 June 14 June 29 July 31 March 31 0.550 March 15 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends for 2017: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.550 December 14 December 29 January 31, 2018 September 30 0.550 September 14 September 29 October 31 June 30 0.550 June 16 June 30 July 31 March 31 0.625 March 14 March 31 April 28
Common Equity Distribution Agreements
Issuances of Stock under Equity Distribution Agreements	The following table provides information about the issuances of common stock under the equity distribution agreements for the periods indicated: Class A Common Stock Issuances Six Months Ended June 30, 2018 Year Ended December 31, 2017 Shares issued 66,989 4,472,083 Weighted average public offering price $ 10.96 $ 13.88 Net proceeds (1) $ 688 $ 61,213 (1) Net of selling commissions and expenses.
Series B Preferred Equity Distribution Agreement
Issuances of Stock under Equity Distribution Agreements	The following table provides information about the issuances of preferred stock under the Series B Preferred Equity Distribution Agreement for the periods indicated: Series B Preferred Stock Issuances Six Months Ended June 30, 2018 Year Ended December 31, 2017 Shares issued 37,461 168,291 Weighted average public offering price $ 24.82 $ 24.95 Net proceeds (1) $ 899 $ 4,090 (1) Net of selling commissions and expenses.

Summary of Significant Accoun27

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Summary Of Significant Accounting Policies [Line Items]
Cash Equivalents Percentage Held in Us Government Backed Securities	98.00%	98.00%
ASU No. 2016-01
Summary Of Significant Accounting Policies [Line Items]
Cumulative effect increase (net of taxes) in stockholders' equity	$ 4,059

Investments in Agency MBS - Add

Investments in Agency MBS - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Agency MBS
Fair Value of MBS	$ 4,050,458	$ 4,054,424

Investments in Agency MBS - A29

Investments in Agency MBS - Additional Information About Gains and Losses Recognized with Respect to Investments in MBS classified as trading securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net gains (losses) recognized in earnings for:
MBS sold during the period	$ (20,892)	$ 15,855	$ (109,235)	$ 11,636
Agency MBS
Net gains (losses) recognized in earnings for:
MBS still held at period end	(17,876)	13,474	(73,220)	11,191
MBS sold during the period	(3,005)	2,343	(36,006)	397
Total	$ (20,881)	$ 15,817	$ (109,226)	$ 11,588

Borrowings - Outstanding Repurc

Borrowings - Outstanding Repurchase Agreement Borrowings (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements outstanding		$ 3,752,582	$ 3,667,181
Pledged with agency-backed MBS
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements outstanding		3,752,582	3,667,181
MBS collateral, at fair value		3,959,656	3,858,815
Net amount	[1]	$ 207,074	$ 191,634
Weighted-average rate		2.12%	1.56%
Weighted-average term to maturity (in days)		15 days	12 days
[1]	Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance.

Borrowings - Information Regard

Borrowings - Information Regarding Outstanding Repurchase Agreement Borrowings During the Period (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Weighted-average outstanding balance	$ 3,619,483	$ 4,125,631	$ 3,675,051	$ 4,025,321
Weighted-average rate	1.96%	1.08%	1.80%	1.00%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-term unsecured debt	$ 73,992	$ 73,880
Net of unamortized debt issuance costs	$ 1,308	$ 1,420

Borrowings - Long-term Unsecure

Borrowings - Long-term Unsecured Debt Instruments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Senior Notes Due 2025
Debt Instrument [Line Items]
Outstanding Principal	$ 35,300	$ 35,300
Annual Interest Rate	6.75%	6.75%
Interest Payment Frequency	Quarterly	Quarterly
Weighted-Average Interest Rate	6.75%	6.75%
Maturity	Mar. 15, 2025	Mar. 15, 2025
Early Redemption Date	Mar. 15, 2018	Mar. 15, 2018
Senior Notes Due 2023
Debt Instrument [Line Items]
Outstanding Principal	$ 25,000	$ 25,000
Annual Interest Rate	6.625%	6.625%
Interest Payment Frequency	Quarterly	Quarterly
Weighted-Average Interest Rate	6.625%	6.625%
Maturity	May 1, 2023	May 1, 2023
Early Redemption Date	May 1, 2016	May 1, 2016
Trust Preferred Debt
Debt Instrument [Line Items]
Outstanding Principal	$ 15,000	$ 15,000
Interest Payment Frequency	Quarterly	Quarterly
Weighted-Average Interest Rate	5.10%	4.11%
Annual Interest Rate	LIBOR+ 2.25 - 3.00 %	LIBOR+ 2.25 - 3.00 %
Trust Preferred Debt | Minimum
Debt Instrument [Line Items]
Maturity	2,033	2,033
Early Redemption Date	2,008	2,008
Trust Preferred Debt | Maximum
Debt Instrument [Line Items]
Maturity	2,035	2,035
Early Redemption Date	2,010	2,010

Derivative Instruments - Fair V

Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Derivative Assets	$ 9,921	$ 763
Derivative Liabilities	(234)	(4,833)
Interest Rate Swap and Forward Starting Interest Rate Swap
Derivative Assets	5,044	0
Derivative Liabilities	0	(3,338)
5-year U.S. Treasury Note Futures
Derivative Assets	0	0
Derivative Liabilities	0	(20)
10-year U.S. Treasury Note Futures
Derivative Assets	1,422	0
Derivative Liabilities	0	(1,321)
TBA Commitments
Derivative Assets	3,455	763
Derivative Liabilities	$ (234)	$ (154)

Derivative Instruments - Intere

Derivative Instruments - Interest Rate Swap Agreements (Details) - Interest Rate Swap - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Notional Amount	$ 3,325,000,000	$ 3,600,000,000
Weighted-average: Fixed Pay Rate	1.97%	1.67%
Weighted-average: Variable Receive Rate	2.33%	1.52%
Weighted-average: Net Receive (Pay) Rate	0.36%	(0.15%)
Weighted-average: Remaining Life (in years)	6 years 3 months 18 days	5 years 1 month 6 days
Fair Value, Asset and Liability	$ 5,044,000	$ (3,338,000)
Less Than Three Years Maturity
Notional Amount	$ 1,050,000,000	$ 1,300,000,000
Weighted-average: Fixed Pay Rate	1.53%	1.28%
Weighted-average: Variable Receive Rate	2.34%	1.51%
Weighted-average: Net Receive (Pay) Rate	0.81%	0.23%
Weighted-average: Remaining Life (in years)	2 years	1 year 9 months 18 days
Fair Value, Asset and Liability	$ 893,000	$ (248,000)
Three To Less Than Seven Years Maturity
Notional Amount	$ 225,000,000	$ 700,000,000
Weighted-average: Fixed Pay Rate	1.95%	1.87%
Weighted-average: Variable Receive Rate	2.32%	1.48%
Weighted-average: Net Receive (Pay) Rate	0.37%	(0.39%)
Weighted-average: Remaining Life (in years)	3 years 9 months 18 days	3 years 10 months 24 days
Fair Value, Asset and Liability	$ 331,000	$ (454,000)
Seven to Less Than Ten Years Maturity
Notional Amount	$ 2,000,000,000
Weighted-average: Fixed Pay Rate	2.18%
Weighted-average: Variable Receive Rate	2.33%
Weighted-average: Net Receive (Pay) Rate	0.15%
Weighted-average: Remaining Life (in years)	8 years 3 months 18 days
Fair Value, Asset and Liability	$ 3,562,000
Ten or More Years Maturity
Notional Amount	$ 50,000,000
Weighted-average: Fixed Pay Rate	2.98%
Weighted-average: Variable Receive Rate	2.33%
Weighted-average: Net Receive (Pay) Rate	(0.65%)
Weighted-average: Remaining Life (in years)	29 years 8 months 12 days
Fair Value, Asset and Liability	$ 258,000
Seven To Ten Year Maturity
Notional Amount		$ 1,600,000,000
Weighted-average: Fixed Pay Rate		1.90%
Weighted-average: Variable Receive Rate		1.55%
Weighted-average: Net Receive (Pay) Rate		(0.35%)
Weighted-average: Remaining Life (in years)		8 years 3 months 18 days
Fair Value, Asset and Liability		$ (2,636,000)

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
5-year U.S. Treasury Note Futures
Derivative [Line Items]
Notional Amount	$ 0		$ 21,600,000
10-year U.S. Treasury Note Futures
Derivative [Line Items]
Notional Amount	$ 700,000,000	$ 850,000,000	650,000,000	$ 350,000,000	$ 0	$ 0
Maturity date	2018-09
Derivative outstanding options	$ 0		$ 0

Derivative Instruments - TBA Co

Derivative Instruments - TBA Commitments (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Asset	$ 9,921,000	$ 763,000
Fair Value, Liability	(234,000)	(4,833,000)
TBA Commitments
Notional Amount: Net Purchase Commitment	1,100,000,000	1,265,000,000
Contractual Forward Price	1,143,342,000	1,296,369,000
Market Price	1,146,563,000	1,296,978,000
Fair Value, Asset	3,455,000	763,000
Fair Value, Liability	(234,000)	(154,000)
Fair Value	3,221,000	609,000
TBA Commitments | Dollar Roll Positions Four Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase
Notional Amount: Net Purchase Commitment	100,000,000
Contractual Forward Price	101,406,000
Market Price	101,906,000
Fair Value, Asset	500,000
TBA Commitments | Dollar Roll Positions Four Point Five Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase
Notional Amount: Net Purchase Commitment	900,000,000
Contractual Forward Price	934,561,000
Market Price	936,813,000
Fair Value, Asset	2,252,000
TBA Commitments | Dollar Roll Positions Five Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase
Notional Amount: Net Purchase Commitment	200,000,000
Contractual Forward Price	211,203,000
Market Price	211,906,000
Fair Value, Asset	703,000
TBA Commitments | Dollar Roll Positions Four Point Five Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Sale
Notional Amount: Net Purchase Commitment	100,000,000
Contractual Forward Price	(103,828,000)
Market Price	(104,062,000)
Fair Value, Liability	$ (234,000)
TBA Commitments | Dollar Roll Positions Three Point Zero Percent Fiften Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase
Notional Amount: Net Purchase Commitment		250,000,000
Contractual Forward Price		254,873,000
Market Price		254,766,000
Fair Value, Liability		(107,000)
TBA Commitments | Dollar Roll Positions Three Point Five Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase
Notional Amount: Net Purchase Commitment		1,015,000,000
Contractual Forward Price		1,041,496,000
Market Price		1,042,212,000
Fair Value, Asset		$ 716,000

Derivative Instruments - Deriva

Derivative Instruments - Derivative Gains and Losses Recognized Within the Periods (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest rate derivative gains (losses), net		$ 22,737	$ (36,131)	$ 95,267	$ (37,024)
Total derivative gains (losses), net		16,052	(31,678)	56,206	(29,373)
Interest Rate Swap (Losses) Gains, Net
Interest rate derivative gains (losses), net		16,577	(32,219)	76,787	(28,830)
Interest Rate Swaps Net Interest Income (Expense)
Interest rate derivative gains (losses), net	[1]	2,483	(5,293)	1,667	(10,702)
Interest Rate Swaps Unrealized Gains (losses), Net
Interest rate derivative gains (losses), net		3,780	(26,991)	54,637	(18,824)
Interest Rate Swaps Gains Realized Upon Early Termination
Interest rate derivative gains (losses), net		10,314	65	20,483	696
Options on US Treasury Note Futures
Interest rate derivative gains (losses), net		0	(1,736)	0	(6,153)
TBA Dollar Roll Income
(Losses) gains on agency commitments	[2]	6,742	4,298	13,385	7,696
Other (Losses) Gains on Agency MBS Commitments
(Losses) gains on agency commitments		(13,427)	155	(52,446)	(45)
TBA and Specified Agency MBS Commitments
(Losses) gains on agency commitments		(6,685)	4,453	(39,061)	7,651
U.S. Treasury Note Futures
Interest rate derivative gains (losses), net		$ 6,160	$ (2,176)	$ 18,480	$ (2,041)
[1]	Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements.
[2]	Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase.

Derivative Instruments - Volume

Derivative Instruments - Volume of Activity, in terms of Notional Amount, Related to Derivative Instruments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest Rate Swap and Forward Starting Interest Rate Swap
Derivative [Line Items]
Beginning of Period	$ 3,525,000,000	$ 3,600,000,000	$ 3,600,000,000	$ 3,700,000,000
Additions	300,000,000	375,000,000	550,000,000	775,000,000
Scheduled Settlements	0	0	0	0
Early Terminations	(500,000,000)	(125,000,000)	(825,000,000)	(625,000,000)
End of Period	3,325,000,000	3,850,000,000	3,325,000,000	3,850,000,000
5-year U.S. Treasury Note Futures
Derivative [Line Items]
Beginning of Period			21,600,000
Additions			0
Scheduled Settlements			(21,600,000)
Early Terminations			0
End of Period	0		0
10-year U.S. Treasury Note Futures
Derivative [Line Items]
Beginning of Period	850,000,000	0	650,000,000	0
Additions	900,000,000	608,000,000	1,850,000,000	845,100,000
Scheduled Settlements	(1,050,000,000)	(258,000,000)	(1,800,000,000)	(495,100,000)
Early Terminations	0	0	0	0
End of Period	700,000,000	350,000,000	700,000,000	350,000,000
Commitments To Purchase (sell) MBS
Derivative [Line Items]
Beginning of Period	1,415,000,000	450,000,000	1,265,000,000	725,000,000
Additions	3,865,000,000	2,865,000,000	8,120,000,000	4,315,000,000
Scheduled Settlements	(4,180,000,000)	(2,205,000,000)	(8,285,000,000)	(3,930,000,000)
Early Terminations	0	0	0	0
End of Period	$ 1,100,000,000	1,110,000,000	$ 1,100,000,000	1,110,000,000
Purchased Put Options on 10-Year U.S. Treasury Note Futures
Derivative [Line Items]
Beginning of Period		700,000,000		1,650,000,000
Additions		100,000,000		2,540,000,000
Scheduled Settlements		(800,000,000)		(4,190,000,000)
Early Terminations		0		0
End of Period		0		0
Sold Call Options on Ten Year U.S. Treasury Note Futures
Derivative [Line Items]
Beginning of Period		350,000,000		1,000,000,000
Additions		300,000,000		2,450,000,000
Scheduled Settlements		(650,000,000)		(3,450,000,000)
Early Terminations		0		0
End of Period		0		0
Purchased Call Options on Ten Year U.S. Treasury Note Futures
Derivative [Line Items]
Beginning of Period		350,000,000		1,000,000,000
Additions		1,500,000,000		2,400,000,000
Scheduled Settlements		(1,150,000,000)		(2,700,000,000)
Early Terminations		0		0
End of Period		$ 700,000,000		$ 700,000,000

Derivative Instruments - Cash C

Derivative Instruments - Cash Collateral Posted and Received in Respect of Derivative and Other Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Cash collateral posted	$ 61,550	$ 59,103
U.S. Treasury Note Futures
Cash collateral posted	7,350	6,960
Interest Rate Swap
Cash collateral posted	$ 54,200	46,218
Unsettled MBS Trades and TBA Commitments, Net
Cash collateral posted		$ 5,925

Offsetting of Financial Asset41

Offsetting of Financial Assets and Liabilities - Derivative Instruments and Short-term Borrowing Arrangements, including those Subject to Master Netting or Similar Arrangements (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Derivative instruments:
Derivative Asset, Gross Amount Recognized		$ 9,921	$ 763
Derivative Asset, Amount Offset		0	0
Derivative Asset, Net Amount		9,921	763
Derivative Asset, Financial Instruments	[1]	(234)	0
Derivative Asset, Cash Collateral	[2]	0	0
Derivative Asset, Net amount Total		9,687	763
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized		234	4,833
Derivative Liabilities, Amount Offset		0	0
Derivative Liabilities, Net Amount		234	4,833
Derivative Liabilities, Financial Instruments	[1]	(234)	0
Derivative Liabilities, Cash Collateral	[2]	0	(4,833)
Derivative Liabilities, Net amount Total		0	0
Derivative Financial Instruments, Liabilities
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized		3,752,816	3,672,014
Derivative Liabilities, Amount Offset		0	0
Derivative Liabilities, Net Amount		3,752,816	3,672,014
Derivative Liabilities, Financial Instruments	[1]	(3,752,816)	(3,667,181)
Derivative Liabilities, Cash Collateral	[2]	0	(4,833)
Derivative Liabilities, Net amount Total		0	0
Derivative Financial Instruments, Assets
Derivative instruments:
Derivative Asset, Gross Amount Recognized		9,921	763
Derivative Asset, Amount Offset		0	0
Derivative Asset, Net Amount		9,921	763
Derivative Asset, Financial Instruments	[1]	(234)	0
Derivative Asset, Cash Collateral	[2]	0	0
Derivative Asset, Net amount Total		9,687	763
Repurchase Agreements
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized		3,752,582	3,667,181
Derivative Liabilities, Amount Offset		0	0
Derivative Liabilities, Net Amount		3,752,582	3,667,181
Derivative Liabilities, Financial Instruments	[1]	(3,752,582)	(3,667,181)
Derivative Liabilities, Cash Collateral	[2]	0	0
Derivative Liabilities, Net amount Total		0	0
U.S. Treasury Note Futures
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized			1,341
Derivative Liabilities, Amount Offset			0
Derivative Liabilities, Net Amount			1,341
Derivative Liabilities, Financial Instruments	[1]		0
Derivative Liabilities, Cash Collateral	[2]		(1,341)
Derivative Liabilities, Net amount Total			0
Interest Rate Swap
Derivative instruments:
Derivative Asset, Gross Amount Recognized		5,044
Derivative Asset, Amount Offset		0
Derivative Asset, Net Amount		5,044
Derivative Asset, Financial Instruments	[1]	0
Derivative Asset, Cash Collateral	[2]	0
Derivative Asset, Net amount Total		5,044
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized			3,338
Derivative Liabilities, Amount Offset			0
Derivative Liabilities, Net Amount			3,338
Derivative Liabilities, Financial Instruments	[1]		0
Derivative Liabilities, Cash Collateral	[2]		(3,338)
Derivative Liabilities, Net amount Total			0
10-year U.S. Treasury Note Futures
Derivative instruments:
Derivative Asset, Gross Amount Recognized		1,422
Derivative Asset, Amount Offset		0
Derivative Asset, Net Amount		1,422	0
Derivative Asset, Financial Instruments	[1]	0
Derivative Asset, Cash Collateral	[2]	0
Derivative Asset, Net amount Total		1,422
Derivative instruments:
Derivative Liabilities, Net Amount		0	1,321
TBA Commitments
Derivative instruments:
Derivative Asset, Gross Amount Recognized		3,455	763
Derivative Asset, Amount Offset		0	0
Derivative Asset, Net Amount		3,455	763
Derivative Asset, Financial Instruments	[1]	(234)	0
Derivative Asset, Cash Collateral	[2]	0	0
Derivative Asset, Net amount Total		3,221	763
Derivative instruments:
Derivative Liabilities, Gross Amount Recognized		234	154
Derivative Liabilities, Amount Offset		0	0
Derivative Liabilities, Net Amount		234	154
Derivative Liabilities, Financial Instruments	[1]	(234)	0
Derivative Liabilities, Cash Collateral	[2]	0	(154)
Derivative Liabilities, Net amount Total		$ 0	$ 0
[1]	Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets.
[2]	Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term unsecured debt, carrying value	$ 73,992	$ 73,880
Long-term unsecured debt, Fair Value	69,375	70,314
ASU No. 2016-01
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Cumulative effect increase (net of taxes) in stockholders' equity	4,059
Private Equity Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Investment in equity securities and investment funds measured at fair value	$ 6,174	439
Investments in equity securities and investment funds, at carrying amount		1,675
Investments in equity securities and investment funds, at cost		1,236
Investments in equity securities and investment funds, fair value		$ 5,801
Private Equity Funds | Discount Factor for Lack of Marketability and Control | Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair value discount rate	8	20
Private Equity Funds | ASU No. 2016-01
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Cumulative effect increase (net of taxes) in stockholders' equity	$ 4,059

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
MBS
Derivative assets, at fair value	$ 9,921	$ 763
Derivative Liabilities	(234)	(4,833)
Agency MBS
MBS
Fair Value of MBS	4,050,458	4,054,424
Private-Label MBS
MBS
Fair Value of MBS	61	76
Fair Value, Measurements, Recurring
MBS
Fair Value of MBS	4,050,519	4,054,500
Derivative assets, at fair value	9,921	763
Derivative Liabilities	(234)	(4,833)
Other assets	6,174	439
Total	4,066,380	4,050,869
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
MBS
Fair Value of MBS	0	0
Derivative assets, at fair value	1,422	0
Derivative Liabilities	0	(1,341)
Other assets	0	0
Total	1,422	(1,341)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
MBS
Fair Value of MBS	4,050,458	4,054,424
Derivative assets, at fair value	8,499	763
Derivative Liabilities	(234)	(3,492)
Other assets	0	0
Total	4,058,723	4,051,695
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
MBS
Fair Value of MBS	61	76
Derivative assets, at fair value	0	0
Derivative Liabilities	0	0
Other assets	6,174	439
Total	6,235	515
Fair Value, Measurements, Recurring | Agency MBS
MBS
Trading securities	4,050,458	4,054,424
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 1
MBS
Trading securities	0	0
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 2
MBS
Trading securities	4,050,458	4,054,424
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 3
MBS
Trading securities	0	0
Fair Value, Measurements, Recurring | Private-Label MBS
MBS
Trading securities	61	76
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 1
MBS
Trading securities	0	0
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 2
MBS
Trading securities	0	0
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 3
MBS
Trading securities	$ 61	$ 76

Fair Value Measurements - Chang

Fair Value Measurements - Change in Fair Value of Level 3 Investments that are Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Beginning balance	$ 5,926	$ 1,976	$ 515	$ 1,799
Addition of certain investments in equity securities as of January 1, 2018			5,362
Included in investment gain (loss), net	312	(101)	364	61
Sales		(1,268)		(1,268)
Payments, net	(13)	(32)	(20)	(54)
Accretion of discount	10	43	14	80
Ending balance	6,235	618	6,235	618
Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date	$ 312	$ (145)	$ 364	$ 3

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	May 30, 2018	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Line Items]
Operating Loss Carryforwards		$ 40,318	$ 40,318
Operating Loss Carryforwards Expiration Period			2,027
Operating loss carryforwards expiration in year one		136,840	$ 136,840
Operating loss carryforwards expiration in year two		102,927	102,927
Operating loss carryforwards expiration in year three		70,319	70,319
Operating loss carryforwards expiration in year four		4,191	4,191
Operating loss carryforwards expiration in year five		78,378	$ 78,378
Statutory federal income tax rate			21.00%	35.00%
Excess AMT credit carryforwards refundable rate			50.00%
AMT credit carryforward		9,133	$ 9,133	$ 9,133
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		5,425	32,330
Tax Year 2017 | Arlington County, Virginia
Income Tax Disclosure [Line Items]
Tax assessment received for business, professional and occupation license tax	$ 9,380
Capital Loss Carryforward
Income Tax Disclosure [Line Items]
Tax Credit Carryforward, Amount		$ 392,655	$ 392,655

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Ordinary deferred tax assets:
NOL carry forward	$ 10,378	$ 15,619
Deferred net loss on designated hedges		4,381
Stock-based compensation	1,836	1,999
Other, net		19
Total ordinary deferred tax assets	12,214	22,018
Ordinary deferred tax liabilities:
Deferred net gain on designated hedges	(605)
Net unrealized gain on designated hedges	(35,282)	(21,218)
Other, net	(338)
Total ordinary deferred tax liabilities	(36,225)	(21,218)
Ordinary deferred tax liabilities, net	(24,011)
Ordinary deferred tax assets, net		800
Capital deferred tax assets:
NCL carry forward	101,069	80,895
Net unrealized loss on investments	35,587	23,431
Valuation allowance	(136,656)	(104,326)
Total deferred tax liabilities, net	$ (24,011)
Total deferred tax assets, net		$ 800

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computations of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Basic weighted-average common shares outstanding	28,210	24,319	28,204	23,987
Diluted weighted-average common shares outstanding	28,210	24,319	28,204	23,987
Net loss attributable to common stock	$ (3,757)	$ (17,963)	$ (60,277)	$ (12,709)
Basic loss per common share	$ (0.13)	$ (0.74)	$ (2.14)	$ (0.53)
Diluted loss per common share	$ (0.13)	$ (0.74)	$ (2.14)	$ (0.53)

Earnings (Loss) Per Share - Add

Earnings (Loss) Per Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restricted Stock and Performance Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	252,962	233,418	242,925	239,248

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	May 31, 2017USD ($)$ / sharesshares	Jun. 30, 2018$ / sharesshares	Jun. 30, 2018$ / sharesshares	Dec. 31, 2017$ / sharesshares	May 16, 2017shares	Feb. 22, 2017shares	May 24, 2013shares
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Preferred stock, shares authorized (in shares)		25,000,000	25,000,000	25,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01	$ 0.01
Prior Equity Distribution Agreements
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Agreement termination date			Feb. 23, 2017
Common Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Repurchase of Class A common stock (in shares)				0
Common Class A
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Common stock, shares authorized (in shares)		450,000,000	450,000,000	450,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01	$ 0.01
Common Stock Voting Rights Per Share Owned		1	1
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased		1,951,305	1,951,305
Common Class A | Maximum
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased		2,000,000	2,000,000
Common Class A | Common Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Conversion of Class B common stock to Class A common stock (in shares)				20,256
Repurchase of Class A common stock (in shares)		0	0
Issuance of stock (in shares)			66,989	4,472,083
Common Class A | Common Stock | New Equity Distribution Agreements
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Number of Shares Offer and Sell		1,461,728	1,461,728
Common Class A | Common Stock | Maximum
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Number of Shares Offer and Sell							1,750,000
Common Class A | Common Stock | Maximum | New Equity Distribution Agreements
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Number of Shares Offer and Sell						6,000,000
Common Class B
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Common stock, shares authorized (in shares)		100,000,000	100,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Common Stock Voting Rights Per Share Owned		3	3
Common Class B | Common Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Conversion of Class B common stock to Class A common stock (in shares)				(20,256)
7.00 % Series B Cumulative Perpetual Redeemable Preferred Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Preferred stock, shares authorized (in shares)		2,000,000	2,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Series A Preferred Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Preferred stock, shares authorized (in shares)		100,000	100,000
Preferred stock shares unissued		100,000	100,000
Undesignated Preferred Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Preferred stock, shares authorized (in shares)		22,900,000	22,900,000
Series B Preferred Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Public Offering Price Per Share | $ / shares	$ 24
Net proceeds underwriting discounts and commissions and expenses | $	$ 3,018
Preferred stock, dividend rate percentage			7.00%
Preferred stock voting rights per share owned		0	0
Preferred stock, liquidation preference per share | $ / shares		$ 25	$ 25
Preferred stock, redeemable price per share | $ / shares		$ 25	$ 25
Preferred stock, redemption date			May 12, 2022
Preferred stock, dividend payment terms			Dividends are payable quarterly in arrears on the 30th day of each December, March, June and September.
Series B Preferred Stock | Public Offering
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Issuance of stock (in shares)	135,000
Series B Preferred Stock | Preferred Stock
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Issuance of stock (in shares)			37,461	303,291
Series B Preferred Stock | Preferred Stock | Series B Preferred Equity Distribution Agreement
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Issuance of stock (in shares)			37,461	168,291
Number of Shares Offer and Sell		1,659,248	1,659,248
Series B Preferred Stock | Preferred Stock | Maximum
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Number of Shares Offer and Sell					1,865,000

Stockholders' Equity - Dividend

Stockholders' Equity - Dividends Declared and Paid (Details) - $ / shares	3 Months Ended						6 Months Ended	12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Equity [Abstract]
Dividend Amount (in dollars per share)	$ 0.375	$ 0.550	$ 0.550	$ 0.550	$ 0.550	$ 0.625	$ 0.925	$ 2.275
Declaration Date	Jun. 14, 2018	Mar. 15, 2018	Dec. 14, 2017	Sep. 14, 2017	Jun. 16, 2017	Mar. 14, 2017
Record Date	Jun. 29, 2018	Mar. 29, 2018	Dec. 29, 2017	Sep. 29, 2017	Jun. 30, 2017	Mar. 31, 2017
Pay Date	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2017	Apr. 28, 2017

Stockholders' Equity - Issuance

Stockholders' Equity - Issuances of Stock under Equity Distribution Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Common Class A | Common Stock
Class Of Stock [Line Items]
Shares issued		66,989	4,472,083
Common Class A | Common Stock | Common Equity Distribution Agreements
Class Of Stock [Line Items]
Shares issued		66,989	4,472,083
Weighted average public offering price		$ 10.96	$ 13.88
Net proceeds	[1]	$ 688	$ 61,213
Series B Preferred Stock | Preferred Stock
Class Of Stock [Line Items]
Shares issued		37,461	303,291
Series B Preferred Stock | Preferred Stock | Series B Preferred Equity Distribution Agreement
Class Of Stock [Line Items]
Shares issued		37,461	168,291
Weighted average public offering price		$ 24.82	$ 24.95
Net proceeds	[1]	$ 899	$ 4,090
[1]	Net of selling commissions and expenses.