Hatteras Financial (HTS) 10-Q 24 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 23, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	HTS
Entity Registrant Name	HATTERAS FINANCIAL CORP
Entity Central Index Key	1,419,521
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		96,416,658

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Mortgage-backed securities, at fair value (including pledged assets of $15,759,447 and $16,538,214, respectively)	$ 16,669,383	$ 17,587,010
Mortgage loans held for investment, at fair value	183,320	31,460
Cash and cash equivalents (including pledged cash of $395,424 and $323,791, respectively)	588,608	627,595
Unsettled purchased mortgage-backed securities, at fair value	57,914	24,792
Receivable for securities sold		5,197
Accrued interest receivable	50,620	54,274
Principal payments receivable	140,508	111,439
Other investments	41,388	41,252
Derivative assets, at fair value	5,037	27,151
Other assets	21,415	6,630
Total assets	17,758,193	18,516,800
Liabilities and shareholders’ equity
Repurchase agreements	14,993,065	15,759,831
Payable for unsettled securities	57,917	24,750
Accrued interest payable	3,990	6,968
Derivative liabilities, at fair value	319,711	244,591
Dividends payable	53,023	53,014
Accounts payable and other liabilities	4,300	6,850
Total liabilities	15,432,006	16,096,004
Shareholders’ equity:
7.625% Series A Cumulative Redeemable Preferred stock, $.001 par value, 25,000,000 shares authorized, 11,500,000 shares issued and outstanding, respectively ($287,500 aggregate liquidation preference)	278,252	278,252
Common stock, $.001 par value, 200,000,000 shares authorized, 96,790,541 and 96,771,158 shares issued and outstanding, respectively	97	97
Additional paid-in capital	2,456,797	2,454,718
Accumulated deficit	(635,768)	(518,036)
Accumulated other comprehensive income	226,809	205,765
Total shareholders’ equity	2,326,187	2,420,796
Total liabilities and shareholders’ equity	$ 17,758,193	$ 18,516,800

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Mortgage-backed securities, pledged assets	$ 15,759,447	$ 16,538,214
Pledged cash	$ 395,424	$ 323,791
Series A preferred stock dividend rate per year	7.625%	7.625%
7.625% Series A Cumulative Redeemable Preferred stock, par value	$ 0.001	$ 0.001
7.625% Series A Cumulative Redeemable Preferred stock, shares authorized	25,000,000	25,000,000
7.625% Series A Cumulative Redeemable Preferred stock, shares issued	11,500,000	11,500,000
7.625% Series A Cumulative Redeemable Preferred stock, shares outstanding	11,500,000	11,500,000
7.625% Series A Cumulative Redeemable Preferred stock, aggregate Liquidation Preference	$ 287,500	$ 287,500
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	96,790,541	96,790,541
Common stock, shares outstanding	96,771,158	96,771,158

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income:
Mortgage-backed securities	$ 76,270	$ 89,458	$ 162,632	$ 185,765
Mortgage loans held for investment	1,088		1,555
Short-term cash investments	318	347	606	629
Total interest income	77,676	89,805	164,793	186,394
Interest expense	23,750	35,128	51,064	73,579
Net interest margin	53,926	54,677	113,729	112,815
Operating expenses:
Management fee	4,083	4,144	8,178	8,298
Share-based compensation	1,034	842	2,079	1,702
General and administrative	3,840	2,324	6,950	4,471
Total operating expenses	8,957	7,310	17,207	14,471
Other income (loss):
Net realized gain (loss) on sale of mortgage-backed securities	(309)	(4,584)	16,144	2,852
Loss on mortgage loans held for investment	(689)		(445)
Loss on derivative instruments, net	(19,415)	(55,260)	(122,200)	(96,875)
Total other loss	(20,413)	(59,844)	(106,501)	(94,023)
Net income (loss)	24,556	(12,477)	(9,979)	4,321
Dividends on preferred stock	5,480	5,481	10,961	10,961
Net income (loss) available to common shareholders	$ 19,076	$ (17,958)	$ (20,940)	$ (6,640)
Earnings (loss) per share - common stock, basic	$ 0.20	$ (0.19)	$ (0.22)	$ (0.07)
Earnings (loss) per share - common stock, diluted	0.20	(0.19)	(0.22)	(0.07)
Dividends per share of common stock	$ 0.50	$ 0.50	$ 1	$ 1
Weighted average common shares outstanding, basic	96,790,541	96,515,599	96,786,890	96,560,590
Weighted average common shares outstanding, diluted	96,790,541	96,515,599	96,786,890	96,560,590

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 24,556	$ (12,477)	$ (9,979)	$ 4,321
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale	(73,253)	81,034	1,294	115,172
Net unrealized gains on derivative instruments	5,584	24,636	19,750	57,103
Other comprehensive income (loss)	(67,669)	105,670	21,044	172,275
Comprehensive income (loss)	(43,113)	93,193	11,065	176,596
Dividends on preferred stock	5,480	5,481	10,961	10,961
Comprehensive income (loss) available to common shareholders	$ (48,593)	$ 87,712	$ 104	$ 165,635

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	7.625% Series A Cumulative Redeemable Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2014	$ 2,420,796	$ 278,252	$ 97	$ 2,454,718	$ (518,036)	$ 205,765
Share based compensation expense	2,079			2,079
Dividends declared on preferred stock	(10,961)				(10,961)
Dividends declared on common stock	(96,792)				(96,792)
Net loss	(9,979)				(9,979)
Other comprehensive income	21,044					21,044
Balance at Jun. 30, 2015	$ 2,326,187	$ 278,252	$ 97	$ 2,456,797	$ (635,768)	$ 226,809

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income (loss)	$ (9,979)	$ 4,321
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net amortization of premium related to mortgage-backed securities	59,277	46,961
Reclassification of deferred swap loss	22,717	47,607
Amortization related to interest rate swap agreements	51	130
Share-based compensation expense	2,079	1,702
Net gain on sale of mortgage-backed securities	(16,144)	(2,852)
Loss on mortgage loans held for investment	445
Net loss on derivative instruments	122,200	96,875
Changes in operating assets and liabilities:
Decrease in accrued interest receivable	3,654	2,578
Increase in other assets	(15,052)	(1,182)
Decrease in accrued interest payable	(2,978)	(5,131)
Decrease in accounts payable and other liabilities	(1,397)	(186)
Net cash provided by operating activities	164,873	190,823
Investing activities
Purchases of mortgage-backed securities	(1,739,456)	(2,144,633)
Principal repayments on mortgage-backed securities	1,911,958	1,561,297
Sales of mortgage-backed securities	679,539	1,699,029
Purchases of mortgage loans	(166,770)
Principal repayments on mortgage loans	14,465
Net payments on derivative instruments	(29,086)	(34,380)
Purchase of equity investment		(6,000)
Purchase of broker/dealer		(1,349)
Net cash provided by investing activities	670,650	1,073,964
Financing activities
Repurchase of common stock		(1,912)
Cash dividends paid	(107,744)	(107,519)
Proceeds from repurchase agreements	81,523,356	83,196,430
Principal repayments on repurchase agreements	(82,290,122)	(84,306,233)
Proceeds from dollar roll financing		241,121
Repayments on dollar roll financing		(592,947)
Net cash used in financing activities	(874,510)	(1,571,060)
Net decrease in cash and cash equivalents	(38,987)	(306,273)
Cash and cash equivalents, beginning of period	627,595	988,705
Cash and cash equivalents, end of period	588,608	682,432
Supplemental disclosure of cash flow information
Cash paid for interest	61,958	90,139
Supplemental schedule of non-cash investing and financing activities
Obligation to brokers for purchase of unsettled mortgage-backed securities	57,917	59,811
Receivable for securities sold		152,177
Dividends accrued not yet paid	53,023
Redeemable Preferred Stock
Supplemental schedule of non-cash investing and financing activities
Dividends accrued not yet paid	4,628	4,628
Common Stock
Supplemental schedule of non-cash investing and financing activities
Dividends accrued not yet paid	$ 48,395	$ 48,258

Organization and Business Descr

Organization and Business Description	6 Months Ended
	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Business Description	1 . Organization and Business Description Hatteras Financial Corp . (the “Company”) was incorporated in Maryland on September 19, 2007 . The Company invests in single-family residential mortgage assets, such as mortgage-backed securities (“MBS”) , and other financial assets. To date, the Company has primarily invested in adjustable-rate (“ARMs”) and fixed rate MBS, issued or guaranteed by a U.S. Government agency , such as Ginnie Mae, or by a U.S. Gov ernment-sponsored entity , such as Fannie Mae and Freddie Mac (“agency securities”) . The Company is externally managed and advised by its manager, Atlantic Capital Advisors LLC (“ACA”) . The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”) . As a result, the Company does not pay federal income taxes on taxable income distributed to shareholders if certain REIT qualification tests are met . It is the Company’s policy to distribute 100 % of its taxable income, after application of available tax attributes, within the time limits prescribed by the Code, which may extend into the subsequent taxable year . However, the Company may conduct certain activities that cause it to earn income which will not be qualifying income for REIT purposes . The Company has designated certain of its subsidiaries as taxable REIT subsidiaries (“TRSs”) as defined in the Code to engage in such activities, and the Company may in the future form additional TRSs . In June 2015, the Company entered into a definitive purchase agreement to acquire Pingora Asset Management, LLC and Pingora Loan Servicing, LLC (together, “Pingora”), a specialized asset manager focused on investing in new-production performing mortgage servicing rights and servicing residential mortgage loans. The acquisition is subject to customary closing conditions, including requisite regulatory approvals, and is not expected have a material effect on the Company’s net income, financial condition or liquidity. The Company expects the transaction to close in the third quarter of 2015.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2 . Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X . Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements . In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included . Operating results for the three and six months ended June 30 , 2015 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 201 5 . These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . Actual results could differ from those estimates . Significant estimates affecting the accompanying consolidated financial statements include the valuation of MBS and derivative instruments . Certain prior period amounts have been reclassified to conform to the current period classification . Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries . The Company also considers the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 810 on Consolidation in determining whether consolidation is appropriate for any interests held in variable interest entities . All significant intercompany balances and transactions have been eliminated . Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The carrying amounts of cash equivalents approximate their fair value. Cash and cash equivalents includes cash pledged to derivative counterparties, which is held in margin accounts at various counterparties as collateral related to interest rate swaps, Eurodollar futures contracts and forward commitments to purchase TBA securities (as defined below) . Financial Instruments The Company considers its cash and cash equivalents, MBS (settled and unsettled), mortgage loans held for investment, forward purchase commitments, debt security held - to - maturity, receivable for securities sold, accrued interest receivable, principal payment s receivable, payable for unsettled securities, derivative instruments, repurchase agreements and accrued interest payable to meet the definition of financial instruments. The carrying amount of cash and cash equivalents , receivable for securities sold, accrued interest receivable and payable for unsettled securities approximate their fair value due to the short maturities of these instruments and would be valued using Level 1 inputs. The carrying amount of repurchase agreements is deemed to approximate fair value given their short-term duration and would be valued using Level 2 inputs. See Note 4 for discussion of the fair value of MBS. See Note 5 for discussion of the fair value of mortgage loans held for investment. See Note 6 for discussion of the fair value of the held - to - maturity debt security. See Note 8 for discussion of the fair value of derivative instruments , including forward purchase commitments . The Company limits its exposure to credit losses on its portfolio of securities by purchasing predominantly agency securities . The portfolio is diversified to avoid undue exposure to loan originator, geographic and other types of concentration . The Company manages the risk of prepayments of the underlying mortgages by creating a diversified portfolio with a variety of expected prepayment characteristics . See Note 4 for additional information on MBS . The Company is engaged in various trading and brokerage activities including repurchase agreements, dollar roll transactions , interest rate swap agreements , interest rate swaptions and futures contracts in which counterparties primarily include broker-dealers, banks, and other financial institutions . In the event counterparties do not fulfill their obligations, the Company may be exposed to risk of loss . The risk of default depends on the creditworthiness of the counterparty and/or issuer of the instrument . It is the Company’s policy to review, as necessary, the credit standing for each counterparty and retain collateral when appropriate . See Note 7 for additional information on repurchase agreements and Note 8 for additional information on dollar roll transactions , interest rate swap agreements , interest rate swaptions and futures contracts . Mortgage-Backed Securities The Company invests in MBS representing interests in or obligations backed by pools of single-family residential mortgage loans . GAAP requires the Company to classify its investments as either trading, available-for-sale or held-to-maturity securities . Management determines the appropriate classifications of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date . The Company currently classifies all of its MBS as available-for-sale . All assets that are classified as available-for-sale are carried at fair value and unrealized gains and losses are included in other comprehensive income (loss) . Security purchase and sale transactions are recorded on the trade date . Gains or losses realized from the sale of securities are included in income and are determined using the specific identification method . F orward purchase commitments to acquire “when issued” or to-be-announced (“TBA”) securities are recorded at fair value in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) . The fair value of these forward purchase commitments is included in derivative assets or derivative liabilities in the accompanying consolidated balance sheets . If the Company intends to take physical delivery of the securit ies , as is the case for forward purchase commitments to acquire TBA securities from mortgage originators, the commitment is designated as an all-in-one cash flow hedge and its unrealized gains and losses are recorded in other comprehensive income. If the Company does not intend to take physical delivery of the securities , as i s the case with most TBA dollar roll transactions , the commitment is not designated as an accounting hedge and unrealized gains and losses are recorded in “L oss on derivative instruments, net.” See N ote 8 for additional information on forward purchase commitments. The Company assesses its investment securities for other-than-temporary impairment on at least a quarterly basis . When the fair value of an investment is less than its amortized cost at the balance sheet date the impairment is designated as either “temporary” or “other-than-temporary.” In deciding on whether or not a security is other-than- temporarily impaired, the Company uses a two-step evaluation process . First, the Company determines whether it has made any decision to sell a security that is in an unrealized loss position, or, if not, the Company determines whether it is more likely than not that the Company will be required to sell the security prior to recovering its amortized cost basis . If the answer to either of these questions is “yes” then the security is considered other-than-temporarily impaired . No other-than temporary impairment s were recognized during the periods presented herein . Mortgage Loans Held for Investment The Company purchases individual prime jumbo adjustable-rate whole mortgage loans with the intention of holding them as investments . In order to finance its investment in the loans, the Company may securitiz e the loans into MBS not issued or guaranteed by a U.S. Government agency or U.S. Government-sponsored entity. The Company would then purchase the majority of the MBS that the securitization trusts w ould issue, and would expect to consolidate the trusts pursuant to GAAP . The Company has elected to account for these loans under the fair value option, pursuant to ASC Topic 825. As a result of electing the fair value option, the mortgage loans are carried at fair value with changes therein reflected in consolidated net income (loss), consistent with the accounting for the related hedging instruments, thereby enhancing the usefulness of the Company’s financial statements. See “ Interest Income ” below for discussion of the recognition of interest income on mortgage loans . Other changes in fair value are reported in “G ain on mortgage loans held for investment” in the consolidated statements of income. Given the Compan y’ s intent to hold the mortgage loans as investments, p urchases and sales or paydowns of mortgage loans held for investment are classified as investing cash flows in the consolidated statements of cash flows. Derivative Instruments The Company manages economic risks, including interest rate, liquidity and credit risk s, primarily by managing the amount, sources , cost and duration of its debt funding . The objectives of the Company’s risk management strategy are 1) to attempt to mitigate the risk of the cost of its variable rate liabilities increasing during a period of rising interest rates, and 2) to reduce fluctuations in net book value over a range of interest rate scenarios . The principal instruments that the Company uses to achieve these objectives are interest rate swaps and Eurodollar Futures Contracts (“Futures Contracts”) . The Company uses Futures Contracts to approximate the economic hedging results achieved with interest rate swaps . The Company does not enter into any of these transactions for speculative purposes . The Company accounts for derivative instruments in accordance with ASC 815, which requires an entity to recognize all derivatives as either assets or liabilities , measure d at fair value . The accounting for changes in the fair value of derivative instruments depends on whether the instruments are designated and qualify as part of a hedging relationship pursuant to ASC 815 . Changes in fair value related to derivatives not in hedge designated relati onships are recorded in “L oss on derivative instruments, net” in the Company’s consolidated statements of income, whereas changes in fair value related to derivatives in hedge designated relationships are initially recorded in other comprehensive income (loss) and later reclassified to income at the time that the hedged transactions affect earnings . Any portion of the changes in fair value due to hedge ineffectiveness is immediately recognized in the income statement . Derivative instruments in a gain position are reported as derivative assets and derivative instruments in a loss position are reported as derivative liabilities in the Company’s consolidated balance sheets . In the Company’s consolidated statements of cash flows, cash receipts and payments related to derivative instruments are classified according to the underlying nature or purpose of the derivative transaction, generally in the operating section if the derivatives are designated as accounting hedges and in the investing section otherwise . The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to the se instruments in an asset position fail to perform their obligations under the contracts . The Company attempts to minimize this risk by limiting its counterparties to major financial institutions with acceptable credit ratings, monitoring positions with individual counterparties and adjusting posted collateral as required . T he Company’s interest rate swaps have historically been accounted for as cash flow hedges under ASC 815 . However, on September 30, 2013, the Company discontinued hedge accounting for its interest rate swap agreements by de-designating the interest rate swaps as cash flow hedges . No interest rate swaps were terminated in conjunction with this action, and the Company’s risk management and hedging practices were not impacted . As a result of discontinuing hedge accounting, beginning October 1, 2013 changes in the fair value of the Company’s interest rate swap ag reements are recorded in “L oss on derivative instruments, net” in the Company’s consolidated statements of income, rather than in other comprehensive income (loss) . Also, net interest paid or received under the interest rate swaps, which up through September 30 , 2013 was recognized in “interest expense,” i s instead recognized in “L oss on derivative instruments, net.” These interest rate swaps continue to be reported as assets or liabilities on the Company’s consolidated balance sheets at their fair value . As long as the forecasted transactions that were being hedged (i.e . rollovers of the Company’s repurchase agreement borrowings) are still expected to occur, the balance in accumulated other comprehensive income ( AOCI ) from interest rate swap activity up through September 30, 2013 remain s in AOCI and is recognized in the Company’s consolidated statements of income as “interest expense” over the remaining term of the interest rate swaps . See Note 8 for further information . T he Company may also enter into forward purchase commitments as a means of investing in and f inancing agency securities via TBA dollar roll transactions . TBA dollar roll transactions involve moving the settlement of a TBA contract out to a later date by entering into an offsetting short posit ion (referred to as a “pair off” ), net settling the paired off positions for cash, and simultaneously purchasing a similar TBA contract for a later settlement date . The agency securities purchased at the later settlement date are typically priced at a discount to securities for settlement in the current month . This difference is referred to as the “price drop.” The price drop represents compensation to the Company for foregoing net interest margin (interest income less repurchase agreement financing cost) and is referred to as “dollar roll income,” wh ich th e Company classifies in “L oss on derivative instruments, net.” Realized and unrealized gains and losses related to TBA dollar roll transactions are also recognized in “ L oss o n derivative instruments, net.” TBA dollar roll transactions represent off-balance sheet financing . Repurchase Agreements The Company finances the acquisition of its MBS through the use of repurchase agreements . Under these repurchase agreements, the Company sells securities to a lender and agrees to repurchase the same securities in the future for a price that is higher than the original sales price . The difference between the sale price that the Company receives and the repurchase price that the Company pays represents interest paid to the lender . Although structured as a sale and repurchase obligation, a repurchase agreement operates as a financing under which the Company pledges its securities as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral . The Company records repurchase agreements on the consolidated balance sheets at the amount of cash received (or contract value), with accrued interest recorded separately. The Company retains beneficial ownership of the pledged collateral . At the maturity of a repurchase agreement, the Company is required to repay the loan and concurrently receives back its pledged collateral from the lender or, with the consent of the lender, the Company may renew such agreement at the then- prevailing financing rate . These repurchase agreements may require the Company to pledge additional assets to the lender in the event the estimated fair value of the existing pledged collateral declines . Offsetting of Assets and Liabilities The Company’s derivative agreements and repurchase agreements generally contain provisions that allow for netting or the offsetting of receivables and payables with each counterparty . The Company reports amounts in its consolidated balance sheets on a gross basis without regard for such rights of offset or master netting arrangements . Interest Income Interest income on MBS is earned and recognized based on the outstanding principal amount of the investment securities and their contractual terms . Premiums and discounts associated with the purchase of the investment securities are amortized or accreted into interest income over the actual lives of the securities using the effective interest method . The Company recognizes interest income on mortgage loans held for investment based on their stated coupon rates. If a loan becomes 90 days past due, it is considered non-performing and is placed in non-accrual status; a ccrual of interest income ceases and any existing interest receivables are reversed. Any cash received while a loan is in non-accrual status is first applied to unpaid principal and then to unpaid interest. In general, non-performing loans are only restored to accrual status when no principal or interest remains due and unpaid. Income Taxes The Company has elected to be taxed as a REIT under the Code . The Company will generally not be subject to federal income tax to the extent that it distributes 100 % of its taxable income, after application of available tax attributes, within the time limits prescribed by the Code and as long as it satisfies the ongoing REIT requirements including meeting certain asset, income and stock ownership tests . The Company ha s made an election to treat certain of its subsidiaries as TRSs . T hese TRSs are taxable as domestic C corporations and are subject to federal, state and local income taxes based upon their taxable income . Share-Based Compensation Share-based compensation is accounted for under the guidanc e included in the ASC Topic on Stock C ompensation . For share and share-based awards issued to employees, a compensation charge is recorded in earnings based on the fair value of the award . For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance . The Company’s share-based compensation transactions resulted in compensation expense of $ 1,034 and $ 8 42 for the three months ended June 30 , 2015 and 2014 , respectively . Share-based compensation expense was $ 2,079 and $ 1,702 for the six months ended June 30 , 2015 and 2014, respectively. Earnings Per Common Share (EPS) Basic EPS is computed by dividing net income less preferred stock dividends to arrive at net income available to holders of common stock by the weighted average number of shares of common stock outstanding during the period . Diluted EPS is computed using the two class method, as described in the ASC Topic on Earnings Per Share, which takes into account certain adjustments related to participating securities . Participating securities are unvested share-based awards that contain rights to receive nonforfeitable dividends, such as those awarded under the Company’s equity incentive plan . Net income available to holders of common stock after deducting dividends on unvested participating securities if antidilutive, is divided by the weighted average shares of common stock and common equivalent shares outstanding during the period . For the diluted EPS calculation, common equivalent shares outstanding includes the weighted average number of shares of common stock outstanding adjusted for the effect of dilutive unexercised stock options, if any . Other Comprehensive Income (Loss) Other comprehensive income refers to revenue, expenses, gains, and losses that are recorded directly as an adjustment to shareholders’ equity. Other comprehensive income for the Company generally arises from unrealized gains or losses generated from changes in market values of the securities held as available-for-sale and derivative instruments that have been designated as accounting hedges. Recent Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (the “ASU”). This ASU modifies the principals for consolidation of limited partnerships and similar legal entities (such as limited liability companies) including whether such entities represent variable interest entities or voting interest entities. The ASU eliminates the presumption that a general partner (or a managing member, in the case of an LLC) should consolidate a limited partnership. It also changes the conditions under which fees paid to a decision maker or a service provider by a legal entity represent a variable interest in that legal entity. The ASU is effective January 1, 2016 for calendar year companies and early adoption is permitted. The Company is currently evaluating the impact of the ASU and its transition methods.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	3 . Financial Value Measurements The Company’s valuation techniques for financial instruments are based on observable and unobservable inputs . Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company’s market assumptions . The ASC Topic on Fair Value Measurements classifies these inputs into the following hierarchy: Level 1 Inputs – Quoted prices for identical instruments in active markets . Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable . Level 3 Inputs – Instruments with primarily unobservable value drivers . Other than the Futures Contracts and mortgage loans held for investment along with related purchase commitments , all of the Company’s MBS and other derivatives were valued using Level 2 inputs . The Futures Contracts were valued using Level 1 inputs . Mortgage loans held for investment (and related purchase commitments) were valued using Level 3 inputs. See Notes 4 , 5 and 8 , respectively, for a discussion of the valuation of MBS , mortgage loans and derivatives. The carrying values and fair values of the Company’s financial instruments as of June 30 , 2015 and December 31, 2014 were as follows . June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets MBS $ 16,669,383 $ 16,669,383 $ 17,587,010 $ 17,587,010 Mortgage loans held for investment 183,320 183,320 31,460 31,460 Cash and cash equivalents 588,608 588,608 627,595 627,595 Unsettled purchased MBS 57,914 57,914 24,792 24,792 Receivable for securities sold - - 5,197 5,197 Accrued interest receivable 50,620 50,620 54,274 54,274 Principal payments receivable 140,508 140,508 111,439 111,439 Debt security, held-to-maturity (1) 15,000 14,741 15,000 14,853 Short-term investments (1) 20,388 20,388 20,252 20,252 Interest rate swaps and swaptions (2) 3,840 3,840 11,050 11,050 Forward purchase commitments (2) 1,197 1,197 16,101 16,101 Liabilities Repurchase agreements $ 14,993,065 14,993,065 $ 15,759,831 $ 15,759,831 Payable for unsettled securities 57,917 57,917 24,750 24,750 Accrued interest payable 3,990 3,990 6,968 6,968 Interest rate swap liability (3) 19,360 19,360 42,052 42,052 Futures Contracts liability (3) 264,161 264,161 202,501 202,501 Forward purchase commitments (3) 36,190 36,190 38 38 (1) I ncluded in other investments on the consolidated balance sheets. ( 2 ) I ncluded in derivative assets on the consolidated balance sheets. (3) I ncluded in derivative liabilities on the consolidated balance sheets.

Mortgage-Backed Securities

Mortgage-Backed Securities	6 Months Ended
	Jun. 30, 2015
Available-for-sale MBS
Mortgage-Backed Securities	4 . Mortgage-Backed Securities All of the Company’s MBS a re classified as available-for-sale and, as such, are reported at their estimated fair value . The MBS market is primarily an over-the-counter market . As such, there are no standard, public market quotations for individual MBS . The Company estimates the fair value of it s MBS based on a market approach by obtaining values for its securities from third-party pricing services . The third-party pricing services gather trade data and use pricing models that incorporate such factors as coupons, primary mortgage rates, prepayment speeds, spread to the U.S. Treasury and interest rate swap curves, periodic and life caps and other similar factors . The third-party pricing services also receive data from traders at broker-dealers that participate in the active markets for these securities and directly observe numerous trades of securities similar to the securities owned by the Company . The Company regularly reviews the prices obtained and the methods used to derive those prices. As part of this evaluation, the Company considers security-specific factors such as coupon, prepayment experience, fixed/adjustable rate, annual and life caps, coupon index, time to next reset and issuing agency, among other factors to ensure that estimated fair values are appropriate. The Company’s analysis of pricing information obtained also includes comparing the data received to other available information, such as other independent pricing services, repurchase agreement pricing, discounted cash flow analysis, matrix pricing, option adjusted spread models and other fundamental analysis of observable market factors . In addition to agency securities , the Company’s MBS portfolio includes MBS not issued or guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity (“non-agency securities ” ) and credit risk transfer bonds issued by Fannie Mae and Freddie Mac (“GSE CRT bonds”). The following table presents the composition of the Company’s MBS at June 30 , 2015 . Amortized Cost Gross Unrealized Loss Gross Unrealized Gain Estimated Fair Value Agency Securities Fannie Mae Certificates ARMs $ 8,498,889 $ (5,793 ) $ 176,445 $ 8,669,541 Fixed-Rate 1,097,203 (1,243 ) 3,296 1,099,256 Total Fannie Mae 9,596,092 (7,036 ) 179,741 9,768,797 Freddie Mac Certificates ARMs 6,550,748 (13,751 ) 73,666 6,610,663 Fixed-Rate 140,970 - 1,390 142,360 Total Freddie Mac 6,691,718 (13,751 ) 75,056 6,753,023 Total Agency Securities 16,287,810 (20,787 ) 254,797 16,521,820 Total Non-Agency Securities (ARMs) 41,658 - 131 41,789 Total GSE CRT Bonds 106,626 (1,084 ) 232 105,774 Total MBS $ 16,436,094 $ (21,871 ) $ 255,160 $ 16,669,383 The following table presents the composition of the Company’s MBS at December 31, 2014 . Amortized Cost Gross Unrealized Loss Gross Unrealized Gain Estimated Fair Value Agency Securities Fannie Mae Certificates ARMs $ 9,203,741 $ (13,737 ) $ 183,889 $ 9,373,893 Fixed-Rate 1,111,288 - 5,177 1,116,465 Total Fannie Mae 10,315,029 (13,737 ) 189,066 10,490,358 Freddie Mac Certificates ARMs 6,805,885 (21,794 ) 76,790 6,860,881 Fixed-Rate 158,402 - 1,767 160,169 Total Freddie Mac 6,964,287 (21,794 ) 78,557 7,021,050 Total Agency Securities 17,279,316 (35,531 ) 267,623 17,511,408 Total Non-Agency ARMs 75,454 - 148 75,602 Total MBS $ 17,354,770 $ (35,531 ) $ 267,771 $ 17,587,010 The components of the carrying value of available-for-sale MBS at June 30 , 2015 and December 31, 2014 are presented below : June 30, December 31, 2015 2014 Principal balance $ 15,987,238 $ 16,864,583 Unamortized premium 451,230 490,187 Unamortized discount (2,374 ) - Gross unrealized gains 255,160 267,771 Gross unrealized losses (21,871 ) (35,531 ) Carrying value/estimated fair value $ 16,669,383 $ 17,587,010 The following table presents components of interest income on the Company’s MBS portfolio for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Coupon interest $ 108,431 $ 114,328 $ 221,909 $ 232,726 Net premium amortization (32,161 ) (24,870 ) (59,277 ) (46,961 ) Interest income $ 76,270 $ 89,458 $ 162,632 $ 185,765 Gross gains and losses from sales of MBS for the three and six months ended June 30 , 2015 and 2014 were as follows : Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Gross gains $ (12 ) $ 6,076 $ 16,498 $ 13,512 Gross losses (297 ) (10,660 ) (354 ) (10,660 ) Net gain (loss) $ (309 ) $ (4,584 ) $ 16,144 $ 2,852 The Company monitors the performance and market value of its MBS portfolio on an ongoing basis, and on a quarterly basis reviews its MBS for impairment. At June 30, 2015 and December 31, 2014 , the Company had the following securities in a loss position as presented in the following two tables : As of June 30, 2015 Less than 12 Months Greater than 12 Months Total Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized Value Loss Value Loss Value Loss Fannie Mae Certificates ARMs $ 705,435 $ (1,435 ) $ 572,673 $ (4,358 ) $ 1,278,108 $ (5,793 ) Fixed-Rate 540,681 (1,243 ) - - 540,681 (1,243 ) Freddie Mac Certificates ARMs 868,320 (2,332 ) 1,032,803 (11,419 ) 1,901,123 (13,751 ) Fixed-Rate - - - - - - Total GSE CRT Bonds 86,752 (1,084 ) - - 86,752 (1,084 ) Total temporarily impaired securities $ 2,201,188 $ (6,094 ) $ 1,605,476 $ (15,777 ) $ 3,806,664 $ (21,871 ) Number of securities in an unrealized loss position 104 54 158 As of December 31, 2014 Less than 12 Months Greater than 12 Months Total Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized Value Loss Value Loss Value Loss Fannie Mae Certificates ARMs $ 806,600 $ (1,240 ) $ 1,306,153 $ (12,497 ) $ 2,112,753 $ (13,737 ) Fixed-Rate - - - - - - Freddie Mac Certificates ARMs 498,994 (792 ) 1,737,760 (21,002 ) 2,236,754 (21,794 ) Fixed-Rate - - - - - - Total temporarily impaired securities $ 1,305,594 $ (2,032 ) $ 3,043,913 $ (33,499 ) $ 4,349,507 $ (35,531 ) Number of securities in an unrealized loss position 56 108 164 The Company did not make the decision to sell the above securities as of June 30 , 2015 and December 31, 2014 , nor was it deemed more likely than not the Company would be required to sell these securities before recovery of their amortized cost basis . The unrealized losses on the above securities are the result of market interest rates and are not considered to be credit related. No impairment losses were recognized during the periods presented herein. The contractual maturity of the Company’s MBS ranges from 15 to 30 years . Because of prepayments on the underlying mortgage loans, the actual weighted-average life is expected to be significantly less than the stated maturity .

Mortgage Loans Held For Investm

Mortgage Loans Held For Investment	6 Months Ended
	Jun. 30, 2015
Mortgage Loans Held for Investment
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Mortgage-Backed Securities	5. Mortgage Loans Held for Investment The Company purchases individual jumbo adjustable-rate whole mortgage loans with the intention of holding them as investments . The loans are being accounted for under the fair value option. See Note 2 for further discussion. As of June 30 , 201 5 , the unpaid principal balance and the fair value of the Company’s mortgage loans held for investment were $179,885 and $183,320 , respectively. As of December 31, 2014, the unpaid principal balance and the fair value of the Company’s mortgage loans held for investment were $ 30,792 and $ 31,460 , respectively. The Company did not invest in mortgage loans prior to the fourth quarter of 2014. The following table provides the geographic distribution of mortgage loans held at June 30 , 201 5 and December 31, 2014 , b ased on unpaid principal balance . June 30, 2015 December 31, 2014 California 60 % 82 % Illinois 8 % 2 % Texas 8 % 3 % Washington 5 % 2 % All other 19 % 11 % Total 100 % 100 % The following table provides additional data on the Company’s mortgage loan portfolio at June 30 , 2015 and December 31, 2014. June 30, 2015 December 31, 2014 Portfolio Portfolio Portfolio Range Weighted Average Portfolio Range Weighted Average Unpaid principal balance $17 to $2,000 $ 759 $447 to $1,332 $ 790 Interest rate 2.50% to 4.13% 3.40% 2.75% to 3.75% 3.43% Maturity 5/2044 to 7/2045 12/2044 6/2044 to 12/2044 9/2044 FICO score at loan origination 700 to 815 769 705 to 813 762 Loan-to-value ratio at loan origination 24% to 80% 68% 28% to 80% 65% No loans were 90 days or more past due and none were on nonaccrual status at June 30 , 2015 or December 31, 2014 . The following table presents the rollforward of mortgage loans held for investment for the periods presented . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Fair value, beginning of period $ 123,301 $ - $ 31,460 $ - Principal purchased 71,001 - 166,770 - Principal repaid (10,293 ) - (14,465 ) - Change in fair value (689 ) - (445 ) - Fair value, end of period $ 183,320 $ - $ 183,320 $ - The portion of the change in the fair value that was attributable to changes in credit risk was immaterial for the three and six months ended June 30 , 2015 . The Company classifies its mortgage loans held for investment as Level 3 in the fair value hierarchy. Prices for these inst ruments are obtained from third- party pricing providers which use significant unobservable inputs in their valuations. These valuations are prepared on an instrument-by-instrument basis and primarily use discounted cash flow models that include unobservable market data inputs including prepayment speeds, delinquency levels, and credit losses. Model valuations are then compared to external indicators such as market price quotations from market makers for similar instruments and recent transactions in the same or similar instruments. These valuations may also be discounted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the third-party pricing provider in the absence of market information. The valuation of mortgage loans held for investment requires significant judgment by the third-party pricing provider and management. Assumptions used by the third-party pricing provider due to lack of observable inputs may significantly impact the resulting fair value and therefore the Company’s financial statements. Management reviews the valuations received from the third-party pricing provider. As part of this review, prices are compared against other pricing along with internal valuation expertise to ensure assumptions and pricing is reasonable. The following table provides information about the significant unobservable inputs used in the Level 3 valuation of the Company’s mortgage loans held for investment at June 30 , 201 5 and December 31, 2014 . June 30, 2015 December 31, 2014 Weighted- Weighted- Unobservable Input Range Average Range Average Discount rate 2.0% - 3.7% 3.5 % 3.6% - 3.9% 3.8 % Conditional refinance rate 11.8% - 18.7% 14.8 % 12.4% - 19.3% 15.3 % Default rate 0% - 1.7% 0.5 % 0% - 1.5% 0.4 % Loss severity 0% - 22.9% 14.2 % 10.2% - 19.9% 13.8 %

Other Investments

Other Investments	6 Months Ended
	Jun. 30, 2015
Schedule Of Investments [Abstract]
Other Investments	6 . Other Investments Other investments consisted of the following items as of June 30 , 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 Short-term investments $ 20,388 $ 20,252 Debt security, held-to-maturity 15,000 15,000 Equity investment 6,000 6,000 Total other investments $ 41,388 $ 41,252 The Company owns both a $ 15,000 debt security and a $ 6,000 equity investment in a non-public repurchase lending counterparty . The debt security matures on March 24 , 201 9 . The Company has designated this debt security as a held-to-maturity investment, and as such it is carried at its cost basis. The debt security pays interest quarterly at the rate of 4.0 % above the three-month London Interbank Offered Rate (“LIBOR”) . The Company estimates the fair value of this debt security to be approximately $ 1 4, 741 and $ 14, 85 3 at June 30 , 2015 and December 31, 2014 , respectively, which was determined by calculating the present value of the projected future cash flows using a discount rate from a similar issuer and security (which represent Level 2 inputs) . The Company acc ounts for the equity investment under the cost method and concluded there have been no identified events or circumstances that would have a significant adverse effect on the fair value of the investment since the purchase date .

Repurchase Agreements

Repurchase Agreements	6 Months Ended
	Jun. 30, 2015
Banking And Thrift [Abstract]
Repurchase Agreements	7 . Repurchase Agreements T he Company uses repurchase agreements to finance MBS purchases . These repurchase agreements are collateralized by the Company’s MBS and typically bear interest at rates that are closely related to LIBOR . At June 30 , 2015 and December 31, 2014 , the Company had repurchase indebt ed ness outstanding with 26 and 25 counterparties with a weighted average remaining contractual maturity of 1.5 and 1 . 0 months , respectively . The following table presents contractual maturity information regarding the Company’s repurchase agreements: June 30, 2015 December 31, 2014 Weighted Average Weighted Average Balance Contractual Rate Balance Contractual Rate Within 30 days $ 13,493,065 0.38 % $ 13,770,099 0.35 % 30 days to 3 months - 0.00 % 1,489,732 0.36 % 3 months to 36 months 1,500,000 0.54 % 500,000 0.53 % $ 14,993,065 0.40 % $ 15,759,831 0.36 % The fair value of securities and accrued interest the Company had pledged under repurchase agreements at June 30 , 2015 and December 31, 2014 was $ 15,793,188 and $ 1 6 , 575 , 106 , respectively . See Note s 2 and 8 for discussion of TBA dollar roll transactions, which represent off-balance sheet financing .

Derivatives and Other Hedging I

Derivatives and Other Hedging Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivatives and Other Hedging Instruments	8 . Derivatives and Other Hedging Instruments In connection with the Company’s risk management strategy, the Company hedges a portion of its interest rate risk by entering into derivative contracts. The Company may enter into agreements for interest rate swaps, interest rate swaptions , interest rate cap or floor contracts and futures or forward contracts. The Company’s risk management strategy attempts to manage the overall risk of the portfolio, reduce fluctuations in book value and generate additional income distributable to shareholders. For additional information regarding the Company’s derivative instruments and its overall risk management strategy, please refer to the discussion of derivative instruments in Note 2. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair value s of interest rate swaptions are estimated based on the fair value of the underlying interest rate swaps that the Company has the option to enter, and are based on estimates from the counterparty and pricing models . The fair value of Futures Contracts is based on quoted prices from the exchange on which they trade. The fair value of MBS forward purchase commitments was determined using the same methodology as MBS as described in Note 4. The fair value of forward purchase commitments for whole loans was determined using the same methodology as mortgage loans held for investment as described in Note 5. The Company applies fallout assumptions to the third-party pricing of forward purchase commitments in order to adjust for loans that the counterparties may not successfully issue. The table below presents the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30 , 2015 and December 31, 2014 , respectively. Derivative Instruments Balance Sheet Location June 30, 2015 December 31, 2014 Interest rate swaps and swaptions Derivative assets $ 3,840 $ 11,050 Forward purchase commitments - MBS Derivative assets 1,152 16,101 Forward purchase commitments - mortgage loans Derivative assets 45 - $ 5,037 $ 27,151 Interest rate swaps Derivative liabilities $ 19,360 $ 42,052 Futures contracts Derivative liabilities 264,161 202,501 Forward purchase commitments - MBS Derivative liabilities 36,190 36 Forward purchase commitments - mortgage loans Derivative liabilities - 2 $ 319,711 $ 244,591 Interest Rate Swaps and Swaptions The Company finances its activities primarily through repurchase agreements, which are generally settled on a short-term basis, usually from one to three months. At each settlement date, the Company refinances each repurchase agreement at the market interest rate at that time. Since the Company is exposed to interest rates on its bo rrowings that change on a short- term basis, it enters into hedging agreements to mitigate the effect of these changes. Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement s without exchange of the underlying notional amount. The effect of these hedges is to synthetically lockup interest rates on a portion of the Company’s repurchase agreements for the terms of the interest rate swaps. Although the Company’s objective is to hedge the risk associated with changing repurchase agreement rates, the Company’s interest rate swaps are benchmark interest rate swaps which perform with reference to LIBOR. Therefore, the Company remains at risk to the variability of the spread between repurchase agreement rates and LIBOR interest rates. Until September 30, 2013, the Company elected cash flow hedge accounting for its interest rate swaps. Under cash flow hedge accounting, effective hedge gains or losses are initially recorded in AOCI and subsequently reclassified into net income in the period that the hedged forecasted transaction affects earnings. Ineffective hedge gains and losses are recorded on a current basis in earnings. The hedge ineffectiveness is attributable primarily to differences in the reset dates on the Company’s interest rate swaps versus the refinancing dates of its repurchase agreements. See “Financial Statement Presentation” below for quantification of gains and losses on interest rate swaps for the three and six months ended June 30 , 2015 and 2014 . On September 30, 2013, the Company de-designated its interest rate swaps as cash flow hedges, thus terminating cash flow hedge accounting. As long as the forecasted rollovers of the related repurchase agreements are still expected to occur, amounts in AOCI related to the cash flow hedges through September 30, 2013 will remain in AOCI and will continue to be reclassified to interest expense as interest is accrued and paid on the related repurchase agreements. During the next 12 months, the Company estimates that an additional $ 10,080 will be reclassified out of AOCI as an increase to interest expense. The Company continues to hedge its exposure to variability in future funding costs via interest rate swaps and other derivative instruments. As a result of discontinuing hedge accounting, beginning October 1, 2013, changes in the fair value of the Company’s interest rate swaps are recorded in “ L oss on derivative instruments, net” in the consolidated statements of income, consistent with the Company’s historical accounting for Futures Contracts, as described below. Monthly net cash settlements under the interest rate swa ps are also recorded in “L oss on derivative instruments, net” beginning October 1, 2013. The volume of activity for the Company’s interest rate swap instruments is shown in the table below. Notional Value Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning of period $ 7,300,000 $ 10,100,000 $ 8,300,000 $ 10,700,000 Additions - - - - Expirations and terminations (2,200,000 ) (200,000 ) (3,200,000 ) (800,000 ) End of period $ 5,100,000 $ 9,900,000 $ 5,100,000 $ 9,900,000 During the second quarter of 2015, the Company terminated swaps with $ 1, 4 00,000 of notional value for a payment of $ 5,210 . The terminated swaps had original maturities extending through December 31, 2015 . I nformation regarding the Company’s interest rate swaps as of June 30 , 2015 and December 31, 2014 follows. June 30, 2015 December 31, 2014 Wtd . Avg. Wtd . Avg. Remaining Wtd . Avg. Remaining Wtd . Avg. Notional Term Fixed Interest Notional Term Fixed Interest Maturity Amount in Months Rate in Contract Amount in Months Rate in Contract 12 months or less $ 1,700,000 8 1.09% $ 3,700,000 6 1.73% Over 12 months to 24 months 2,600,000 19 0.91% 2,400,000 18 0.92% Over 24 months to 36 months 800,000 29 0.93% 1,800,000 29 0.89% Over 36 months to 48 months - - - 400,000 38 0.96% Total $ 5,100,000 17 0.97% $ 8,300,000 16 1.28% A swaption is a derivative instrument that gives the holder the option to enter into a pay-fixed interest rate swap in the future, if it so desires. As of June 30 , 2015 , the Company had two interest rate swaptions outstanding , which were entered into during the first quarter of 2015 : Options Underlying Swaps Swaptions Original Cost Fair Value Wtd . Avg. Months to Expiration Notional Wtd . Avg. Fixed Pay Rate Receive Rate Wtd . Avg. Term (Years) Fixed payer $ 4,000 $ 3,221 9 $ 1,065,000 3.00% 3 month LIBOR 5 As of December 31, 2014, the Company had four interest rate swaptions outstanding : Options Underlying Swaps Swaptions Original Cost Fair Value Wtd . Avg. Months to Expiration Notional Wtd . Avg. Fixed Pay Rate Receive Rate Wtd . Avg. Term (Years) Fixed payer 20,080 4,561 6 992,300 2.74% 3 month LIBOR 7 During the first quarter of 2015, the Company terminated t he swaptions held as of December 31, 2014 and received proceeds of $ 2,049 . Eurodollar Futures Contracts The Company uses Futures Contracts to 1) synthetically replicate an interest rate swap, or 2) offset the changes in value of its forward purchases of certain MBS and mortgage loans . The following table presents the composition of the Company’s Futures Contracts as of June 30 , 2015 and December 31, 2014 , respectively. Fair Value June 30, 2015 December 31, 2014 Futures Contracts designed to replicate swaps $ (262,874 ) $ (202,202 ) Futures Contracts designed to hedge value changes in forward purchases (1,287 ) (299 ) Total fair value of Futures Contracts $ (264,161 ) $ (202,501 ) The volume of activity for the Company’s Futures Contracts is shown in the table below. Number of Contracts Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning of period 128,713 114,325 130,074 95,327 New positions opened 25,499 24,925 46,017 102,746 Early settlements (13,881 ) (14,162 ) (27,149 ) (70,979 ) Settlements at maturity (9,055 ) (1,813 ) (17,666 ) (3,819 ) End of period 131,276 123,275 131,276 123,275 Each Futures Contract embod ies $ 1 million of notional value and c orresponds to a Eurodollar contract for a specific three mo nth timeframe . The effective dates of the Eurodollar contracts underlying the Company’s Futures Contracts range from 2015 through 202 2 . The Company has not designated its Futures Contracts as hedges for accounting purposes. As a result, realized and unrealized changes in fair value thereon are recognized in net income in the period in which the changes occur. See “Financial Statement Presentation” below for quantification of gains and losses on Futures Contracts for the three and six months ended June 30 , 2015 and 2014 . To Be Announced Securities Purchases and Mortgage Loan Commitments The Company purchases certain of its investment securities in the forward market. The Company purchases ARM TBA contracts and 15-year TBA contracts from dealers. ARM TBA contracts are not a frequently-traded security and are generally used to acquire MBS for the portfolio. 15-year TBA contracts are a highly liquid security, and may be physically settled, net settled or traded as an investment. 15-year TBA contracts may also be financed in the dollar roll market. The Company also has commitments with various mortgage origination companies to purchase their production as it becomes securitized. Forward purchases do not qualify for trade date accounting and are considered derivatives for financial statement purposes, as described in Note 2. The net fair value of the forward commitment is reported on the balance sheet as an asset or liability. Whether the unrealized gain (or loss) is recognized in net income or other comprehensive income depends on whether or not the commitment has been designated as an accounting hedge, as discussed in Note 2. The following table summarizes the Company’s forward purchase commitments as of June 30 , 2015. Face / UPB Cost Fair Market Value Net Asset (Liability) ARMs - originators $ 352,183 $ 359,696 $ 360,527 $ 831 ARMs - dealers 75,000 76,445 76,767 322 15-year TBA dollar roll securities 3,655,000 3,759,194 3,723,004 (36,190 ) Whole mortgage loans 52,279 53,241 53,286 45 Total purchase commitments $ 4,134,462 $ 4,248,576 $ 4,213,584 $ (34,992 ) The following table summarizes the Company’s forward purchase commitments as of December 31, 2014. Face / UPB Cost Fair Market Value Net Asset (Liability) ARMs - originators $ 376,936 $ 384,673 $ 388,829 $ 4,156 ARMs - dealers 20,095 20,553 20,517 (36 ) 15-year TBA dollar roll securities 3,400,000 3,509,871 3,521,816 11,945 Whole mortgage loans 11,656 11,937 11,935 (2 ) Total purchase commitments $ 3,808,687 $ 3,927,034 $ 3,943,097 $ 16,063 Financial Statement Presentation The Company does not use either offsetting or netting to present any of its derivative assets or liabilities. The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of June 30 , 2015 . Assets/(Liabilities) Cash Collateral Posted (Held) Net Asset/(Liability) Interest rate swaps $ 619 $ - $ 619 Interest rate swaptions 3,221 (405 ) 2,816 Forward purchase commitments 1,197 - 1,197 Interest rate swaps $ (19,360 ) $ 30,115 $ 10,755 Forward purchase commitments (36,190 ) 36,428 238 Futures contracts (264,161 ) 328,881 64,720 The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of December 31, 2014 . Assets/(Liabilities) Cash Collateral Posted (Held) Net Asset/(Liability) Interest rate swaps $ 6,489 $ - $ 6,489 Interest rate swaptions 4,561 (1,558 ) 3,003 Forward purchase commitments 16,101 - 16,101 Interest rate swaps $ (42,052 ) $ 66,653 $ 24,601 Forward purchase commitments (38 ) 5,585 5,547 Futures contracts (202,501 ) 251,553 49,052 The following table shows the components of “ L oss on derivative instruments, net” for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Interest rate swaps – net realized and unrealized gains $ 10,497 $ 8,525 $ 11,613 $ 24,388 Interest rate swaptions – net realized and unrealized losses (263 ) (2,679 ) (3,290 ) (2,679 ) Interest rate swaps – monthly net settlements (15,217 ) (29,754 ) (36,640 ) (59,166 ) Futures Contracts – fair value adjustments 32,356 (90,005 ) (61,660 ) (107,387 ) Futures Contracts – losses from maturities (11,074 ) - (18,567 ) - Futures Contracts – other realized losses (299 ) (3,647 ) (22,673 ) (22,253 ) Mortgage loan purchase commitments - fair value adjustments (284 ) - 47 - TBA dollar roll income 24,901 25,622 48,056 46,443 TBA dollar rolls – net realized and unrealized gains (losses) (60,032 ) 36,678 (39,086 ) 23,779 Loss on derivative instruments, net $ (19,415 ) $ (55,260 ) $ (122,200 ) $ (96,875 ) See Note 2 for discussion of TBA dollar roll transactions and TBA dollar roll income. The table below presents the effect of the interest rate swap s that were previously designated as cash flow hedges on the Company’s AOCI for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning balance $ (16,604 ) $ (86,490 ) $ (30,042 ) $ (111,174 ) Reclassification of net losses to the income statement 9,279 22,923 22,717 47,607 Ending balance $ (7,325 ) $ (63,567 ) $ (7,325 ) $ (63,567 ) Credit-risk-related Contingent Features The Company has agreements with its interest rate swap and swaption counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company’s GAAP shareholders’ equity declines by a specified percentage over a specified time period, or if the Company fails to maintain a minimum shareholders’ equity threshold, then the Company could be declared in default on its derivative obligations. The Company also has agreements with several of those counterparties that contain provisions regarding maximum levera ge ratios. At June 30 , 2015 , the Company was in compliance with these requirements. As of June 30 , 2015 , the fair value of derivatives in a net liability position related to the se agreements was $19,360 . The Company has collateral posting requirements with each of its counterparties and all interest rate swap agreements were fully collateralized as of June 30 , 2015 .

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Capital Stock	9 . Capital Stock Stock Repurchase Program On June 18, 2013, the Company’s board of directors authorized a stock repurchase program (the “Repurchase Program”) to acquire up to 10,000,000 shares of the Company’s common stock. For the three and six months ended June 30 , 2015 , the Company repurchased 0 shares of common stock . For the three and six months ended June 30, 2014, the Company repurchased 100,000 shares of common stock under the Repurchase Program in at-the-market t ransactions at a total cost of $ 1,912 . As of June 30 , 2015, there are 7,414,553 shares of repurchase capacity available under the Repurchase Program. During periods when the Company’s board of directors has authorized the Company to repurchase shares under the Repurchase Program, the Company will not be authorized to issue shares of common stock under the 2012 Program described above. Similarly, during periods when the Company’s board of directors has authorized the Company to issue shares of common stock under the 2012 Program, the Company will not be authorized to repurchase shares under the Repurchase Program.

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings per Share	10 . Earnings per Share The following table details the Company’s calculation of earnings per share for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Basic earnings (loss) per share: Net income (loss) $ 24,556 $ (12,477 ) $ (9,979 ) $ 4,321 Less preferred stock dividends (5,480 ) (5,481 ) (10,961 ) (10,961 ) Net income (loss) available to common shareholders $ 19,076 $ (17,958 ) $ (20,940 ) $ (6,640 ) Weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Basic earnings (loss) per share $ 0.20 $ (0.19 ) $ (0.22 ) $ (0.07 ) Diluted earnings (loss) per share: Net income (loss) $ 24,556 $ (12,477 ) $ (9,979 ) $ 4,321 Less preferred stock dividends for antidilutive shares (5,480 ) (5,481 ) (10,961 ) (10,961 ) Net income (loss) available to common shareholders $ 19,076 $ (17,958 ) $ (20,940 ) $ (6,640 ) Weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Potential dilutive shares from exercise of stock options - - - - Diluted weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Diluted earnings (loss) per share $ 0.20 $ (0.19 ) $ (0.22 ) $ (0.07 ) There were no potentially dilutive shares for any of the periods presented.

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Transactions with Related Parties	1 1 . Transactions with Related Parties Management Fees The Company is externally managed by ACA pursuant to a management agreement (the “Management Agreement”). All of the Company’s executive officers are also employees of ACA. ACA manages the Company’s day-to-day operations, subject to the direction and oversight of the Company’s board of directors which includes six independent directors. The Management Agreement expires on February 23, 201 6 and is thereafter automatically renewed for an additional one -year term unless terminated under certain circumstances. ACA must be provided 180 days prior notice of any such termination and will be paid a termination fee equal to four times the average annual management fee earned by ACA during the two year period immediately preceding termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Under the terms of the Management Agreement, the Company reimburses ACA for certain operating expenses of the Company that are borne by ACA. ACA is entitled to receive a management fee payable monthly in arrears in an amount equal to 1/12th of an amount determined as follows: for the Company’s equity up to $ 250 million, 1.50 % (per annum) of equity; plus for the Company’s equity in excess of $ 250 million and up to $ 500 million, 1.10 % (per annum) of equity; plus for the Company’s equity in excess of $ 500 million and up to $ 750 million, 0.80 % (per annum) of equity; plus for the Company’s equity in excess of $ 750 million, 0.50 % (per annum) of equity. For purposes of calculating the management fee, equity is defined as the value, computed in accordance with GAAP, of shareholders’ equity, adjusted to exclude the effects of unrealized gains or losses. The following table presents amounts incurred for management fee, reimbursable expenses and share-based compensation expense related to the restricted common shares granted to management. Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Management fee $ 4,083 $ 4,144 $ 8,178 $ 8,298 Reimbursable expenses 1,264 876 2,557 1,688 Total $ 5,347 $ 5,020 $ 10,735 $ 9,986 Share-based compensation $ 1,034 $ 842 $ 2,079 $ 1,702 None of the reimbursement payments were specifically attributable to the compensation of the Company’s executive officers. Reimbursable expenses above includes rent paid by ACA for the Company’s office space. As of October 2014, the Company’s office space is rented from a real estate partnership in which some of the Company’s executive officers have a financial interest, at an annual rate of approximately $ 300 . At June 30 , 2015 and December 31, 2014 , the Company owed ACA $ 1,947 and $ 3,198 , respectively, for the management fee and reimbursable expenses, which is included in accounts payable and other liabilities.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income	1 2 . Accumulated Other Comprehensive Income The Company records unrealized gains and losses on its MBS and its forward purchase commitments securities as described in Note 4 and Note 8 . As discussed in Note 8 , the Company ceased hedge accounting for its interest rate swaps effective September 30, 2013. Beginning October 1, 2013, changes in the fair value of interest rate swaps are recorded directly to net income. The cumulative unrealized loss on interest rate swaps in AOCI as of September 30, 2013 is being amortized to net income as the hedged forecasted transactions occur. The following table rolls forward the components of AOCI, including reclassification adjustments, for the three months ended June 30 , 2015 . Unrealized gain/(loss) on available for sale MBS Unrealized gain/(loss) on unsettled MBS Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at April 1, 2015 $ 305,906 $ 794 $ (466 ) $ (11,756 ) $ 294,478 Other comprehensive income (loss) before reclassification (72,926 ) (3 ) 161 1,153 (71,615 ) Balance Sheet Reclassification: Amount reclassified to MBS available for sale - (794 ) - (4,848 ) (5,642 ) Income Statement Reclassification: Amounts reclassified to net loss on the sale of MBS 309 - - - 309 Amounts reclassified to interest expense - - - 9,279 9,279 Net current period other comprehensive income (loss) (72,617 ) (797 ) 161 5,584 (67,669 ) Accumulated other comprehensive income (loss) at June 30, 2015 $ 233,289 $ (3 ) $ (305 ) $ (6,172 ) $ 226,809 The following table rolls forward the components of AOCI, including reclassification adjustments, for the three months ended June 30 , 2014 . Unrealized gain/(loss) on available for sale mortgage-backed securities Unrealized gain/(loss) on unsettled mortgage-backed securities Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at April 1, 2014 $ 143,756 $ (186 ) $ (569 ) $ (84,448 ) $ 58,553 Other comprehensive income before reclassification 75,608 582 74 3,755 80,019 Balance Sheet Reclassification: Amount reclassified to mortgage-backed securities available for sale - 186 - (2,042 ) (1,856 ) Income Statement Reclassification: Amounts reclassified to net loss on the sale of mortgage-backed securities 4,584 - - - 4,584 Amounts reclassified to interest expense - - - 22,923 22,923 Net current period other comprehensive income 80,192 768 74 24,636 105,670 Accumulated other comprehensive income (loss) at June 30, 2014 $ 223,948 $ 582 $ (495 ) $ (59,812 ) $ 164,223 The following table rolls forward the components of AOCI, including reclassification adjustments, for the six months ended June 30, 2015. Unrealized gain/(loss) on available for sale MBS Unrealized gain/(loss) on unsettled MBS Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at January 1, 2015 $ 232,240 $ 42 $ (595 ) $ (25,922 ) $ 205,765 Other comprehensive income (loss) before reclassification 17,193 791 290 6,001 24,275 Balance Sheet Reclassification: Amount reclassified to MBS available for sale - (836 ) - (8,968 ) (9,804 ) Income Statement Reclassification: Amounts reclassified to net gain on the sale of MBS (16,144 ) - - - (16,144 ) Amounts reclassified to interest expense - - - 22,717 22,717 Net current period other comprehensive income (loss) 1,049 (45 ) 290 19,750 21,044 Accumulated other comprehensive income (loss) at June 30, 2015 $ 233,289 $ (3 ) $ (305 ) $ (6,172 ) $ 226,809 The following table rolls forward the components of AOCI, including reclassification adjustments, for the six months ended June 30, 2014. Unrealized gain/(loss) on available for sale mortgage-backed securities Unrealized gain/(loss) on unsettled mortgage-backed securities Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at January 1, 2014 $ 109,490 $ - $ (627 ) $ (116,915 ) $ (8,052 ) Other comprehensive income before reclassification 117,310 396 132 5,797 123,635 Balance Sheet Reclassification: Amount reclassified to mortgage-backed securities available for sale - 186 - (1,384 ) (1,198 ) Income Statement Reclassification: Amounts reclassified to net gain on the sale of mortgage-backed securities (2,852 ) - - - (2,852 ) Amounts reclassified for termination of all- in-one cash flow hedge accounting on dollar roll TBAs - - - 5,083 5,083 Amounts reclassified to interest expense - - - 47,607 47,607 Net current period other comprehensive income 114,458 582 132 57,103 172,275 Accumulated other comprehensive income (loss) at June 30, 2014 $ 223,948 $ 582 $ (495 ) $ (59,812 ) $ 164,223

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X . Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements . In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included . Operating results for the three and six months ended June 30 , 2015 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 201 5 . These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . Actual results could differ from those estimates . Significant estimates affecting the accompanying consolidated financial statements include the valuation of MBS and derivative instruments . Certain prior period amounts have been reclassified to conform to the current period classification .
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries . The Company also considers the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 810 on Consolidation in determining whether consolidation is appropriate for any interests held in variable interest entities . All significant intercompany balances and transactions have been eliminated .
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The carrying amounts of cash equivalents approximate their fair value. Cash and cash equivalents includes cash pledged to derivative counterparties, which is held in margin accounts at various counterparties as collateral related to interest rate swaps, Eurodollar futures contracts and forward commitments to purchase TBA securities (as defined below) .
Financial Instruments	Financial Instruments The Company considers its cash and cash equivalents, MBS (settled and unsettled), mortgage loans held for investment, forward purchase commitments, debt security held - to - maturity, receivable for securities sold, accrued interest receivable, principal payment s receivable, payable for unsettled securities, derivative instruments, repurchase agreements and accrued interest payable to meet the definition of financial instruments. The carrying amount of cash and cash equivalents , receivable for securities sold, accrued interest receivable and payable for unsettled securities approximate their fair value due to the short maturities of these instruments and would be valued using Level 1 inputs. The carrying amount of repurchase agreements is deemed to approximate fair value given their short-term duration and would be valued using Level 2 inputs. See Note 4 for discussion of the fair value of MBS. See Note 5 for discussion of the fair value of mortgage loans held for investment. See Note 6 for discussion of the fair value of the held - to - maturity debt security. See Note 8 for discussion of the fair value of derivative instruments , including forward purchase commitments . The Company limits its exposure to credit losses on its portfolio of securities by purchasing predominantly agency securities . The portfolio is diversified to avoid undue exposure to loan originator, geographic and other types of concentration . The Company manages the risk of prepayments of the underlying mortgages by creating a diversified portfolio with a variety of expected prepayment characteristics . See Note 4 for additional information on MBS . The Company is engaged in various trading and brokerage activities including repurchase agreements, dollar roll transactions , interest rate swap agreements , interest rate swaptions and futures contracts in which counterparties primarily include broker-dealers, banks, and other financial institutions . In the event counterparties do not fulfill their obligations, the Company may be exposed to risk of loss . The risk of default depends on the creditworthiness of the counterparty and/or issuer of the instrument . It is the Company’s policy to review, as necessary, the credit standing for each counterparty and retain collateral when appropriate . See Note 7 for additional information on repurchase agreements and Note 8 for additional information on dollar roll transactions , interest rate swap agreements , interest rate swaptions and futures contracts .
Mortgage-Backed Securities	Mortgage-Backed Securities The Company invests in MBS representing interests in or obligations backed by pools of single-family residential mortgage loans . GAAP requires the Company to classify its investments as either trading, available-for-sale or held-to-maturity securities . Management determines the appropriate classifications of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date . The Company currently classifies all of its MBS as available-for-sale . All assets that are classified as available-for-sale are carried at fair value and unrealized gains and losses are included in other comprehensive income (loss) . Security purchase and sale transactions are recorded on the trade date . Gains or losses realized from the sale of securities are included in income and are determined using the specific identification method . F orward purchase commitments to acquire “when issued” or to-be-announced (“TBA”) securities are recorded at fair value in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) . The fair value of these forward purchase commitments is included in derivative assets or derivative liabilities in the accompanying consolidated balance sheets . If the Company intends to take physical delivery of the securit ies , as is the case for forward purchase commitments to acquire TBA securities from mortgage originators, the commitment is designated as an all-in-one cash flow hedge and its unrealized gains and losses are recorded in other comprehensive income. If the Company does not intend to take physical delivery of the securities , as i s the case with most TBA dollar roll transactions , the commitment is not designated as an accounting hedge and unrealized gains and losses are recorded in “L oss on derivative instruments, net.” See N ote 8 for additional information on forward purchase commitments. The Company assesses its investment securities for other-than-temporary impairment on at least a quarterly basis . When the fair value of an investment is less than its amortized cost at the balance sheet date the impairment is designated as either “temporary” or “other-than-temporary.” In deciding on whether or not a security is other-than- temporarily impaired, the Company uses a two-step evaluation process . First, the Company determines whether it has made any decision to sell a security that is in an unrealized loss position, or, if not, the Company determines whether it is more likely than not that the Company will be required to sell the security prior to recovering its amortized cost basis . If the answer to either of these questions is “yes” then the security is considered other-than-temporarily impaired . No other-than temporary impairment s were recognized during the periods presented herein .
Mortgage Loans Held for Investment	Mortgage Loans Held for Investment The Company purchases individual prime jumbo adjustable-rate whole mortgage loans with the intention of holding them as investments . In order to finance its investment in the loans, the Company may securitiz e the loans into MBS not issued or guaranteed by a U.S. Government agency or U.S. Government-sponsored entity. The Company would then purchase the majority of the MBS that the securitization trusts w ould issue, and would expect to consolidate the trusts pursuant to GAAP . The Company has elected to account for these loans under the fair value option, pursuant to ASC Topic 825. As a result of electing the fair value option, the mortgage loans are carried at fair value with changes therein reflected in consolidated net income (loss), consistent with the accounting for the related hedging instruments, thereby enhancing the usefulness of the Company’s financial statements. See “ Interest Income ” below for discussion of the recognition of interest income on mortgage loans . Other changes in fair value are reported in “G ain on mortgage loans held for investment” in the consolidated statements of income. Given the Compan y’ s intent to hold the mortgage loans as investments, p urchases and sales or paydowns of mortgage loans held for investment are classified as investing cash flows in the consolidated statements of cash flows.
Derivative Instruments	Derivative Instruments The Company manages economic risks, including interest rate, liquidity and credit risk s, primarily by managing the amount, sources , cost and duration of its debt funding . The objectives of the Company’s risk management strategy are 1) to attempt to mitigate the risk of the cost of its variable rate liabilities increasing during a period of rising interest rates, and 2) to reduce fluctuations in net book value over a range of interest rate scenarios . The principal instruments that the Company uses to achieve these objectives are interest rate swaps and Eurodollar Futures Contracts (“Futures Contracts”) . The Company uses Futures Contracts to approximate the economic hedging results achieved with interest rate swaps . The Company does not enter into any of these transactions for speculative purposes . The Company accounts for derivative instruments in accordance with ASC 815, which requires an entity to recognize all derivatives as either assets or liabilities , measure d at fair value . The accounting for changes in the fair value of derivative instruments depends on whether the instruments are designated and qualify as part of a hedging relationship pursuant to ASC 815 . Changes in fair value related to derivatives not in hedge designated relati onships are recorded in “L oss on derivative instruments, net” in the Company’s consolidated statements of income, whereas changes in fair value related to derivatives in hedge designated relationships are initially recorded in other comprehensive income (loss) and later reclassified to income at the time that the hedged transactions affect earnings . Any portion of the changes in fair value due to hedge ineffectiveness is immediately recognized in the income statement . Derivative instruments in a gain position are reported as derivative assets and derivative instruments in a loss position are reported as derivative liabilities in the Company’s consolidated balance sheets . In the Company’s consolidated statements of cash flows, cash receipts and payments related to derivative instruments are classified according to the underlying nature or purpose of the derivative transaction, generally in the operating section if the derivatives are designated as accounting hedges and in the investing section otherwise . The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to the se instruments in an asset position fail to perform their obligations under the contracts . The Company attempts to minimize this risk by limiting its counterparties to major financial institutions with acceptable credit ratings, monitoring positions with individual counterparties and adjusting posted collateral as required . T he Company’s interest rate swaps have historically been accounted for as cash flow hedges under ASC 815 . However, on September 30, 2013, the Company discontinued hedge accounting for its interest rate swap agreements by de-designating the interest rate swaps as cash flow hedges . No interest rate swaps were terminated in conjunction with this action, and the Company’s risk management and hedging practices were not impacted . As a result of discontinuing hedge accounting, beginning October 1, 2013 changes in the fair value of the Company’s interest rate swap ag reements are recorded in “L oss on derivative instruments, net” in the Company’s consolidated statements of income, rather than in other comprehensive income (loss) . Also, net interest paid or received under the interest rate swaps, which up through September 30 , 2013 was recognized in “interest expense,” i s instead recognized in “L oss on derivative instruments, net.” These interest rate swaps continue to be reported as assets or liabilities on the Company’s consolidated balance sheets at their fair value . As long as the forecasted transactions that were being hedged (i.e . rollovers of the Company’s repurchase agreement borrowings) are still expected to occur, the balance in accumulated other comprehensive income ( AOCI ) from interest rate swap activity up through September 30, 2013 remain s in AOCI and is recognized in the Company’s consolidated statements of income as “interest expense” over the remaining term of the interest rate swaps . See Note 8 for further information . T he Company may also enter into forward purchase commitments as a means of investing in and f inancing agency securities via TBA dollar roll transactions . TBA dollar roll transactions involve moving the settlement of a TBA contract out to a later date by entering into an offsetting short posit ion (referred to as a “pair off” ), net settling the paired off positions for cash, and simultaneously purchasing a similar TBA contract for a later settlement date . The agency securities purchased at the later settlement date are typically priced at a discount to securities for settlement in the current month . This difference is referred to as the “price drop.” The price drop represents compensation to the Company for foregoing net interest margin (interest income less repurchase agreement financing cost) and is referred to as “dollar roll income,” wh ich th e Company classifies in “L oss on derivative instruments, net.” Realized and unrealized gains and losses related to TBA dollar roll transactions are also recognized in “ L oss o n derivative instruments, net.” TBA dollar roll transactions represent off-balance sheet financing .
Repurchase Agreements	Repurchase Agreements The Company finances the acquisition of its MBS through the use of repurchase agreements . Under these repurchase agreements, the Company sells securities to a lender and agrees to repurchase the same securities in the future for a price that is higher than the original sales price . The difference between the sale price that the Company receives and the repurchase price that the Company pays represents interest paid to the lender . Although structured as a sale and repurchase obligation, a repurchase agreement operates as a financing under which the Company pledges its securities as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral . The Company records repurchase agreements on the consolidated balance sheets at the amount of cash received (or contract value), with accrued interest recorded separately. The Company retains beneficial ownership of the pledged collateral . At the maturity of a repurchase agreement, the Company is required to repay the loan and concurrently receives back its pledged collateral from the lender or, with the consent of the lender, the Company may renew such agreement at the then- prevailing financing rate . These repurchase agreements may require the Company to pledge additional assets to the lender in the event the estimated fair value of the existing pledged collateral declines .
Offsetting of Assets and Liabilities	Offsetting of Assets and Liabilities The Company’s derivative agreements and repurchase agreements generally contain provisions that allow for netting or the offsetting of receivables and payables with each counterparty . The Company reports amounts in its consolidated balance sheets on a gross basis without regard for such rights of offset or master netting arrangements .
Interest Income	Interest Income Interest income on MBS is earned and recognized based on the outstanding principal amount of the investment securities and their contractual terms . Premiums and discounts associated with the purchase of the investment securities are amortized or accreted into interest income over the actual lives of the securities using the effective interest method . The Company recognizes interest income on mortgage loans held for investment based on their stated coupon rates. If a loan becomes 90 days past due, it is considered non-performing and is placed in non-accrual status; a ccrual of interest income ceases and any existing interest receivables are reversed. Any cash received while a loan is in non-accrual status is first applied to unpaid principal and then to unpaid interest. In general, non-performing loans are only restored to accrual status when no principal or interest remains due and unpaid.
Income Taxes	Income Taxes The Company has elected to be taxed as a REIT under the Code . The Company will generally not be subject to federal income tax to the extent that it distributes 100 % of its taxable income, after application of available tax attributes, within the time limits prescribed by the Code and as long as it satisfies the ongoing REIT requirements including meeting certain asset, income and stock ownership tests . The Company ha s made an election to treat certain of its subsidiaries as TRSs . T hese TRSs are taxable as domestic C corporations and are subject to federal, state and local income taxes based upon their taxable income .
Share-Based Compensation	Share-Based Compensation Share-based compensation is accounted for under the guidanc e included in the ASC Topic on Stock C ompensation . For share and share-based awards issued to employees, a compensation charge is recorded in earnings based on the fair value of the award . For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance . The Company’s share-based compensation transactions resulted in compensation expense of $ 1,034 and $ 8 42 for the three months ended June 30 , 2015 and 2014 , respectively . Share-based compensation expense was $ 2,079 and $ 1,702 for the six months ended June 30 , 2015 and 2014, respectively.
Earnings Per Common Share (EPS)	Earnings Per Common Share (EPS) Basic EPS is computed by dividing net income less preferred stock dividends to arrive at net income available to holders of common stock by the weighted average number of shares of common stock outstanding during the period . Diluted EPS is computed using the two class method, as described in the ASC Topic on Earnings Per Share, which takes into account certain adjustments related to participating securities . Participating securities are unvested share-based awards that contain rights to receive nonforfeitable dividends, such as those awarded under the Company’s equity incentive plan . Net income available to holders of common stock after deducting dividends on unvested participating securities if antidilutive, is divided by the weighted average shares of common stock and common equivalent shares outstanding during the period . For the diluted EPS calculation, common equivalent shares outstanding includes the weighted average number of shares of common stock outstanding adjusted for the effect of dilutive unexercised stock options, if any .
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Other comprehensive income refers to revenue, expenses, gains, and losses that are recorded directly as an adjustment to shareholders’ equity. Other comprehensive income for the Company generally arises from unrealized gains or losses generated from changes in market values of the securities held as available-for-sale and derivative instruments that have been designated as accounting hedges.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (the “ASU”). This ASU modifies the principals for consolidation of limited partnerships and similar legal entities (such as limited liability companies) including whether such entities represent variable interest entities or voting interest entities. The ASU eliminates the presumption that a general partner (or a managing member, in the case of an LLC) should consolidate a limited partnership. It also changes the conditions under which fees paid to a decision maker or a service provider by a legal entity represent a variable interest in that legal entity. The ASU is effective January 1, 2016 for calendar year companies and early adoption is permitted. The Company is currently evaluating the impact of the ASU and its transition methods.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Carrying Values and Fair Values of Financial Instruments	The carrying values and fair values of the Company’s financial instruments as of June 30 , 2015 and December 31, 2014 were as follows . June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets MBS $ 16,669,383 $ 16,669,383 $ 17,587,010 $ 17,587,010 Mortgage loans held for investment 183,320 183,320 31,460 31,460 Cash and cash equivalents 588,608 588,608 627,595 627,595 Unsettled purchased MBS 57,914 57,914 24,792 24,792 Receivable for securities sold - - 5,197 5,197 Accrued interest receivable 50,620 50,620 54,274 54,274 Principal payments receivable 140,508 140,508 111,439 111,439 Debt security, held-to-maturity (1) 15,000 14,741 15,000 14,853 Short-term investments (1) 20,388 20,388 20,252 20,252 Interest rate swaps and swaptions (2) 3,840 3,840 11,050 11,050 Forward purchase commitments (2) 1,197 1,197 16,101 16,101 Liabilities Repurchase agreements $ 14,993,065 14,993,065 $ 15,759,831 $ 15,759,831 Payable for unsettled securities 57,917 57,917 24,750 24,750 Accrued interest payable 3,990 3,990 6,968 6,968 Interest rate swap liability (3) 19,360 19,360 42,052 42,052 Futures Contracts liability (3) 264,161 264,161 202,501 202,501 Forward purchase commitments (3) 36,190 36,190 38 38 (1) I ncluded in other investments on the consolidated balance sheets. ( 2 ) I ncluded in derivative assets on the consolidated balance sheets. (3) I ncluded in derivative liabilities on the consolidated balance sheets.

Mortgage-Backed Securities (Tab

Mortgage-Backed Securities (Tables)	6 Months Ended
	Jun. 30, 2015
Investments Debt And Equity Securities [Abstract]
Schedule of Agency Securities and MBS Portfolio Includes MBS not Issued or Guaranteed by U.S. Government Agency or U.S. Government Sponsored Entity	The following table presents the composition of the Company’s MBS at June 30 , 2015 . Amortized Cost Gross Unrealized Loss Gross Unrealized Gain Estimated Fair Value Agency Securities Fannie Mae Certificates ARMs $ 8,498,889 $ (5,793 ) $ 176,445 $ 8,669,541 Fixed-Rate 1,097,203 (1,243 ) 3,296 1,099,256 Total Fannie Mae 9,596,092 (7,036 ) 179,741 9,768,797 Freddie Mac Certificates ARMs 6,550,748 (13,751 ) 73,666 6,610,663 Fixed-Rate 140,970 - 1,390 142,360 Total Freddie Mac 6,691,718 (13,751 ) 75,056 6,753,023 Total Agency Securities 16,287,810 (20,787 ) 254,797 16,521,820 Total Non-Agency Securities (ARMs) 41,658 - 131 41,789 Total GSE CRT Bonds 106,626 (1,084 ) 232 105,774 Total MBS $ 16,436,094 $ (21,871 ) $ 255,160 $ 16,669,383 The following table presents the composition of the Company’s MBS at December 31, 2014 . Amortized Cost Gross Unrealized Loss Gross Unrealized Gain Estimated Fair Value Agency Securities Fannie Mae Certificates ARMs $ 9,203,741 $ (13,737 ) $ 183,889 $ 9,373,893 Fixed-Rate 1,111,288 - 5,177 1,116,465 Total Fannie Mae 10,315,029 (13,737 ) 189,066 10,490,358 Freddie Mac Certificates ARMs 6,805,885 (21,794 ) 76,790 6,860,881 Fixed-Rate 158,402 - 1,767 160,169 Total Freddie Mac 6,964,287 (21,794 ) 78,557 7,021,050 Total Agency Securities 17,279,316 (35,531 ) 267,623 17,511,408 Total Non-Agency ARMs 75,454 - 148 75,602 Total MBS $ 17,354,770 $ (35,531 ) $ 267,771 $ 17,587,010
Components of Carrying Value of Available-For-Sale MBS	The components of the carrying value of available-for-sale MBS at June 30 , 2015 and December 31, 2014 are presented below : June 30, December 31, 2015 2014 Principal balance $ 15,987,238 $ 16,864,583 Unamortized premium 451,230 490,187 Unamortized discount (2,374 ) - Gross unrealized gains 255,160 267,771 Gross unrealized losses (21,871 ) (35,531 ) Carrying value/estimated fair value $ 16,669,383 $ 17,587,010
Schedule of Interest Income	The following table presents components of interest income on the Company’s MBS portfolio for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Coupon interest $ 108,431 $ 114,328 $ 221,909 $ 232,726 Net premium amortization (32,161 ) (24,870 ) (59,277 ) (46,961 ) Interest income $ 76,270 $ 89,458 $ 162,632 $ 185,765
Gross Gains and Losses from MBS Sales	Gross gains and losses from sales of MBS for the three and six months ended June 30 , 2015 and 2014 were as follows : Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Gross gains $ (12 ) $ 6,076 $ 16,498 $ 13,512 Gross losses (297 ) (10,660 ) (354 ) (10,660 ) Net gain (loss) $ (309 ) $ (4,584 ) $ 16,144 $ 2,852
Schedule of MBS in Unrealized Loss Position	The Company monitors the performance and market value of its MBS portfolio on an ongoing basis, and on a quarterly basis reviews its MBS for impairment. At June 30, 2015 and December 31, 2014 , the Company had the following securities in a loss position as presented in the following two tables : As of June 30, 2015 Less than 12 Months Greater than 12 Months Total Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized Value Loss Value Loss Value Loss Fannie Mae Certificates ARMs $ 705,435 $ (1,435 ) $ 572,673 $ (4,358 ) $ 1,278,108 $ (5,793 ) Fixed-Rate 540,681 (1,243 ) - - 540,681 (1,243 ) Freddie Mac Certificates ARMs 868,320 (2,332 ) 1,032,803 (11,419 ) 1,901,123 (13,751 ) Fixed-Rate - - - - - - Total GSE CRT Bonds 86,752 (1,084 ) - - 86,752 (1,084 ) Total temporarily impaired securities $ 2,201,188 $ (6,094 ) $ 1,605,476 $ (15,777 ) $ 3,806,664 $ (21,871 ) Number of securities in an unrealized loss position 104 54 158 As of December 31, 2014 Less than 12 Months Greater than 12 Months Total Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized Value Loss Value Loss Value Loss Fannie Mae Certificates ARMs $ 806,600 $ (1,240 ) $ 1,306,153 $ (12,497 ) $ 2,112,753 $ (13,737 ) Fixed-Rate - - - - - - Freddie Mac Certificates ARMs 498,994 (792 ) 1,737,760 (21,002 ) 2,236,754 (21,794 ) Fixed-Rate - - - - - - Total temporarily impaired securities $ 1,305,594 $ (2,032 ) $ 3,043,913 $ (33,499 ) $ 4,349,507 $ (35,531 ) Number of securities in an unrealized loss position 56 108 164

Mortgage Loans Held For Inves23

Mortgage Loans Held For Investment (Tables)	6 Months Ended
	Jun. 30, 2015
Investments Debt And Equity Securities [Abstract]
Geographic Distribution of Mortgage Loans Held	The following table provides the geographic distribution of mortgage loans held at June 30 , 201 5 and December 31, 2014 , b ased on unpaid principal balance . June 30, 2015 December 31, 2014 California 60 % 82 % Illinois 8 % 2 % Texas 8 % 3 % Washington 5 % 2 % All other 19 % 11 % Total 100 % 100 %
Components for Mortgage Loan Portfolio	The following table provides additional data on the Company’s mortgage loan portfolio at June 30 , 2015 and December 31, 2014. June 30, 2015 December 31, 2014 Portfolio Portfolio Portfolio Range Weighted Average Portfolio Range Weighted Average Unpaid principal balance $17 to $2,000 $ 759 $447 to $1,332 $ 790 Interest rate 2.50% to 4.13% 3.40% 2.75% to 3.75% 3.43% Maturity 5/2044 to 7/2045 12/2044 6/2044 to 12/2044 9/2044 FICO score at loan origination 700 to 815 769 705 to 813 762 Loan-to-value ratio at loan origination 24% to 80% 68% 28% to 80% 65%
Rollforward of Mortgage Loans Held for Investment	The following table presents the rollforward of mortgage loans held for investment for the periods presented . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Fair value, beginning of period $ 123,301 $ - $ 31,460 $ - Principal purchased 71,001 - 166,770 - Principal repaid (10,293 ) - (14,465 ) - Change in fair value (689 ) - (445 ) - Fair value, end of period $ 183,320 $ - $ 183,320 $ -
Schedule of Unobservable Inputs Used in Level 3 Valuation of Mortgage Loans Held for Investment	The following table provides information about the significant unobservable inputs used in the Level 3 valuation of the Company’s mortgage loans held for investment at June 30 , 201 5 and December 31, 2014 . June 30, 2015 December 31, 2014 Weighted- Weighted- Unobservable Input Range Average Range Average Discount rate 2.0% - 3.7% 3.5 % 3.6% - 3.9% 3.8 % Conditional refinance rate 11.8% - 18.7% 14.8 % 12.4% - 19.3% 15.3 % Default rate 0% - 1.7% 0.5 % 0% - 1.5% 0.4 % Loss severity 0% - 22.9% 14.2 % 10.2% - 19.9% 13.8 %

Other Investments (Tables)

Other Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Schedule Of Investments [Abstract]
Summary of Other Investments	Other investments consisted of the following items as of June 30 , 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 Short-term investments $ 20,388 $ 20,252 Debt security, held-to-maturity 15,000 15,000 Equity investment 6,000 6,000 Total other investments $ 41,388 $ 41,252

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	6 Months Ended
	Jun. 30, 2015
Banking And Thrift [Abstract]
Contractual Maturity Information Regarding Repurchase Agreements	T he Company uses repurchase agreements to finance MBS purchases . These repurchase agreements are collateralized by the Company’s MBS and typically bear interest at rates that are closely related to LIBOR . At June 30 , 2015 and December 31, 2014 , the Company had repurchase indebt ed ness outstanding with 26 and 25 counterparties with a weighted average remaining contractual maturity of 1.5 and 1 . 0 months , respectively . The following table presents contractual maturity information regarding the Company’s repurchase agreements: June 30, 2015 December 31, 2014 Weighted Average Weighted Average Balance Contractual Rate Balance Contractual Rate Within 30 days $ 13,493,065 0.38 % $ 13,770,099 0.35 % 30 days to 3 months - 0.00 % 1,489,732 0.36 % 3 months to 36 months 1,500,000 0.54 % 500,000 0.53 % $ 14,993,065 0.40 % $ 15,759,831 0.36 %

Derivatives and Other Hedging26

Derivatives and Other Hedging Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Schedule of Location of Derivatives Instruments on Consolidated Balance Sheet	The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair value s of interest rate swaptions are estimated based on the fair value of the underlying interest rate swaps that the Company has the option to enter, and are based on estimates from the counterparty and pricing models . The fair value of Futures Contracts is based on quoted prices from the exchange on which they trade. The fair value of MBS forward purchase commitments was determined using the same methodology as MBS as described in Note 4. The fair value of forward purchase commitments for whole loans was determined using the same methodology as mortgage loans held for investment as described in Note 5. The Company applies fallout assumptions to the third-party pricing of forward purchase commitments in order to adjust for loans that the counterparties may not successfully issue. The table below presents the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30 , 2015 and December 31, 2014 , respectively. Derivative Instruments Balance Sheet Location June 30, 2015 December 31, 2014 Interest rate swaps and swaptions Derivative assets $ 3,840 $ 11,050 Forward purchase commitments - MBS Derivative assets 1,152 16,101 Forward purchase commitments - mortgage loans Derivative assets 45 - $ 5,037 $ 27,151 Interest rate swaps Derivative liabilities $ 19,360 $ 42,052 Futures contracts Derivative liabilities 264,161 202,501 Forward purchase commitments - MBS Derivative liabilities 36,190 36 Forward purchase commitments - mortgage loans Derivative liabilities - 2 $ 319,711 $ 244,591
Volume of Activity for the Company's Interest Rate Derivative Instruments	The volume of activity for the Company’s interest rate swap instruments is shown in the table below. Notional Value Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning of period $ 7,300,000 $ 10,100,000 $ 8,300,000 $ 10,700,000 Additions - - - - Expirations and terminations (2,200,000 ) (200,000 ) (3,200,000 ) (800,000 ) End of period $ 5,100,000 $ 9,900,000 $ 5,100,000 $ 9,900,000
Schedule of Outstanding Interest Rate Swaptions	A swaption is a derivative instrument that gives the holder the option to enter into a pay-fixed interest rate swap in the future, if it so desires. As of June 30 , 2015 , the Company had two interest rate swaptions outstanding , which were entered into during the first quarter of 2015 : Options Underlying Swaps Swaptions Original Cost Fair Value Wtd . Avg. Months to Expiration Notional Wtd . Avg. Fixed Pay Rate Receive Rate Wtd . Avg. Term (Years) Fixed payer $ 4,000 $ 3,221 9 $ 1,065,000 3.00% 3 month LIBOR 5 As of December 31, 2014, the Company had four interest rate swaptions outstanding : Options Underlying Swaps Swaptions Original Cost Fair Value Wtd . Avg. Months to Expiration Notional Wtd . Avg. Fixed Pay Rate Receive Rate Wtd . Avg. Term (Years) Fixed payer 20,080 4,561 6 992,300 2.74% 3 month LIBOR 7
Schedule of Composition of Futures Contracts	The Company uses Futures Contracts to 1) synthetically replicate an interest rate swap, or 2) offset the changes in value of its forward purchases of certain MBS and mortgage loans . The following table presents the composition of the Company’s Futures Contracts as of June 30 , 2015 and December 31, 2014 , respectively. Fair Value June 30, 2015 December 31, 2014 Futures Contracts designed to replicate swaps $ (262,874 ) $ (202,202 ) Futures Contracts designed to hedge value changes in forward purchases (1,287 ) (299 ) Total fair value of Futures Contracts $ (264,161 ) $ (202,501 )
Schedule of ARM Securities Forward Purchase Commitments with Brokers	The following table summarizes the Company’s forward purchase commitments as of June 30 , 2015. Face / UPB Cost Fair Market Value Net Asset (Liability) ARMs - originators $ 352,183 $ 359,696 $ 360,527 $ 831 ARMs - dealers 75,000 76,445 76,767 322 15-year TBA dollar roll securities 3,655,000 3,759,194 3,723,004 (36,190 ) Whole mortgage loans 52,279 53,241 53,286 45 Total purchase commitments $ 4,134,462 $ 4,248,576 $ 4,213,584 $ (34,992 ) The following table summarizes the Company’s forward purchase commitments as of December 31, 2014. Face / UPB Cost Fair Market Value Net Asset (Liability) ARMs - originators $ 376,936 $ 384,673 $ 388,829 $ 4,156 ARMs - dealers 20,095 20,553 20,517 (36 ) 15-year TBA dollar roll securities 3,400,000 3,509,871 3,521,816 11,945 Whole mortgage loans 11,656 11,937 11,935 (2 ) Total purchase commitments $ 3,808,687 $ 3,927,034 $ 3,943,097 $ 16,063
Gross Amounts Associated with Derivative Financial Instruments	The Company does not use either offsetting or netting to present any of its derivative assets or liabilities. The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of June 30 , 2015 . Assets/(Liabilities) Cash Collateral Posted (Held) Net Asset/(Liability) Interest rate swaps $ 619 $ - $ 619 Interest rate swaptions 3,221 (405 ) 2,816 Forward purchase commitments 1,197 - 1,197 Interest rate swaps $ (19,360 ) $ 30,115 $ 10,755 Forward purchase commitments (36,190 ) 36,428 238 Futures contracts (264,161 ) 328,881 64,720 The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of December 31, 2014 . Assets/(Liabilities) Cash Collateral Posted (Held) Net Asset/(Liability) Interest rate swaps $ 6,489 $ - $ 6,489 Interest rate swaptions 4,561 (1,558 ) 3,003 Forward purchase commitments 16,101 - 16,101 Interest rate swaps $ (42,052 ) $ 66,653 $ 24,601 Forward purchase commitments (38 ) 5,585 5,547 Futures contracts (202,501 ) 251,553 49,052
Schedule of Derivative Instruments Loss, Net	The following table shows the components of “ L oss on derivative instruments, net” for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Interest rate swaps – net realized and unrealized gains $ 10,497 $ 8,525 $ 11,613 $ 24,388 Interest rate swaptions – net realized and unrealized losses (263 ) (2,679 ) (3,290 ) (2,679 ) Interest rate swaps – monthly net settlements (15,217 ) (29,754 ) (36,640 ) (59,166 ) Futures Contracts – fair value adjustments 32,356 (90,005 ) (61,660 ) (107,387 ) Futures Contracts – losses from maturities (11,074 ) - (18,567 ) - Futures Contracts – other realized losses (299 ) (3,647 ) (22,673 ) (22,253 ) Mortgage loan purchase commitments - fair value adjustments (284 ) - 47 - TBA dollar roll income 24,901 25,622 48,056 46,443 TBA dollar rolls – net realized and unrealized gains (losses) (60,032 ) 36,678 (39,086 ) 23,779 Loss on derivative instruments, net $ (19,415 ) $ (55,260 ) $ (122,200 ) $ (96,875 )
Interest Rate Swap
Schedule of Derivative Instruments Forecasted Transactions	I nformation regarding the Company’s interest rate swaps as of June 30 , 2015 and December 31, 2014 follows. June 30, 2015 December 31, 2014 Wtd . Avg. Wtd . Avg. Remaining Wtd . Avg. Remaining Wtd . Avg. Notional Term Fixed Interest Notional Term Fixed Interest Maturity Amount in Months Rate in Contract Amount in Months Rate in Contract 12 months or less $ 1,700,000 8 1.09% $ 3,700,000 6 1.73% Over 12 months to 24 months 2,600,000 19 0.91% 2,400,000 18 0.92% Over 24 months to 36 months 800,000 29 0.93% 1,800,000 29 0.89% Over 36 months to 48 months - - - 400,000 38 0.96% Total $ 5,100,000 17 0.97% $ 8,300,000 16 1.28%
Schedule of Interest Rate Swap Agreements on Accumulated Other Comprehensive Income	The table below presents the effect of the interest rate swap s that were previously designated as cash flow hedges on the Company’s AOCI for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning balance $ (16,604 ) $ (86,490 ) $ (30,042 ) $ (111,174 ) Reclassification of net losses to the income statement 9,279 22,923 22,717 47,607 Ending balance $ (7,325 ) $ (63,567 ) $ (7,325 ) $ (63,567 )
Eurodollar Futures Contracts
Schedule of Derivative Instruments Forecasted Transactions	The volume of activity for the Company’s Futures Contracts is shown in the table below. Number of Contracts Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Beginning of period 128,713 114,325 130,074 95,327 New positions opened 25,499 24,925 46,017 102,746 Early settlements (13,881 ) (14,162 ) (27,149 ) (70,979 ) Settlements at maturity (9,055 ) (1,813 ) (17,666 ) (3,819 ) End of period 131,276 123,275 131,276 123,275

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	The following table details the Company’s calculation of earnings per share for the three and six months ended June 30 , 2015 and 2014 . Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Basic earnings (loss) per share: Net income (loss) $ 24,556 $ (12,477 ) $ (9,979 ) $ 4,321 Less preferred stock dividends (5,480 ) (5,481 ) (10,961 ) (10,961 ) Net income (loss) available to common shareholders $ 19,076 $ (17,958 ) $ (20,940 ) $ (6,640 ) Weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Basic earnings (loss) per share $ 0.20 $ (0.19 ) $ (0.22 ) $ (0.07 ) Diluted earnings (loss) per share: Net income (loss) $ 24,556 $ (12,477 ) $ (9,979 ) $ 4,321 Less preferred stock dividends for antidilutive shares (5,480 ) (5,481 ) (10,961 ) (10,961 ) Net income (loss) available to common shareholders $ 19,076 $ (17,958 ) $ (20,940 ) $ (6,640 ) Weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Potential dilutive shares from exercise of stock options - - - - Diluted weighted average shares 96,790,541 96,515,599 96,786,890 96,560,590 Diluted earnings (loss) per share $ 0.20 $ (0.19 ) $ (0.22 ) $ (0.07 )

Transactions with Related Par28

Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Amounts Incurred for Management Fee and Reimbursable Expenses	For purposes of calculating the management fee, equity is defined as the value, computed in accordance with GAAP, of shareholders’ equity, adjusted to exclude the effects of unrealized gains or losses. The following table presents amounts incurred for management fee, reimbursable expenses and share-based compensation expense related to the restricted common shares granted to management. Three Months Ended June 30 Six Months Ended June 30 2015 2014 2015 2014 Management fee $ 4,083 $ 4,144 $ 8,178 $ 8,298 Reimbursable expenses 1,264 876 2,557 1,688 Total $ 5,347 $ 5,020 $ 10,735 $ 9,986 Share-based compensation $ 1,034 $ 842 $ 2,079 $ 1,702

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Components of Accumulated Other Comprehensive Income	The Company records unrealized gains and losses on its MBS and its forward purchase commitments securities as described in Note 4 and Note 8 . As discussed in Note 8 , the Company ceased hedge accounting for its interest rate swaps effective September 30, 2013. Beginning October 1, 2013, changes in the fair value of interest rate swaps are recorded directly to net income. The cumulative unrealized loss on interest rate swaps in AOCI as of September 30, 2013 is being amortized to net income as the hedged forecasted transactions occur. The following table rolls forward the components of AOCI, including reclassification adjustments, for the three months ended June 30 , 2015 . Unrealized gain/(loss) on available for sale MBS Unrealized gain/(loss) on unsettled MBS Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at April 1, 2015 $ 305,906 $ 794 $ (466 ) $ (11,756 ) $ 294,478 Other comprehensive income (loss) before reclassification (72,926 ) (3 ) 161 1,153 (71,615 ) Balance Sheet Reclassification: Amount reclassified to MBS available for sale - (794 ) - (4,848 ) (5,642 ) Income Statement Reclassification: Amounts reclassified to net loss on the sale of MBS 309 - - - 309 Amounts reclassified to interest expense - - - 9,279 9,279 Net current period other comprehensive income (loss) (72,617 ) (797 ) 161 5,584 (67,669 ) Accumulated other comprehensive income (loss) at June 30, 2015 $ 233,289 $ (3 ) $ (305 ) $ (6,172 ) $ 226,809 The following table rolls forward the components of AOCI, including reclassification adjustments, for the three months ended June 30 , 2014 . Unrealized gain/(loss) on available for sale mortgage-backed securities Unrealized gain/(loss) on unsettled mortgage-backed securities Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at April 1, 2014 $ 143,756 $ (186 ) $ (569 ) $ (84,448 ) $ 58,553 Other comprehensive income before reclassification 75,608 582 74 3,755 80,019 Balance Sheet Reclassification: Amount reclassified to mortgage-backed securities available for sale - 186 - (2,042 ) (1,856 ) Income Statement Reclassification: Amounts reclassified to net loss on the sale of mortgage-backed securities 4,584 - - - 4,584 Amounts reclassified to interest expense - - - 22,923 22,923 Net current period other comprehensive income 80,192 768 74 24,636 105,670 Accumulated other comprehensive income (loss) at June 30, 2014 $ 223,948 $ 582 $ (495 ) $ (59,812 ) $ 164,223 The following table rolls forward the components of AOCI, including reclassification adjustments, for the six months ended June 30, 2015. Unrealized gain/(loss) on available for sale MBS Unrealized gain/(loss) on unsettled MBS Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at January 1, 2015 $ 232,240 $ 42 $ (595 ) $ (25,922 ) $ 205,765 Other comprehensive income (loss) before reclassification 17,193 791 290 6,001 24,275 Balance Sheet Reclassification: Amount reclassified to MBS available for sale - (836 ) - (8,968 ) (9,804 ) Income Statement Reclassification: Amounts reclassified to net gain on the sale of MBS (16,144 ) - - - (16,144 ) Amounts reclassified to interest expense - - - 22,717 22,717 Net current period other comprehensive income (loss) 1,049 (45 ) 290 19,750 21,044 Accumulated other comprehensive income (loss) at June 30, 2015 $ 233,289 $ (3 ) $ (305 ) $ (6,172 ) $ 226,809 The following table rolls forward the components of AOCI, including reclassification adjustments, for the six months ended June 30, 2014. Unrealized gain/(loss) on available for sale mortgage-backed securities Unrealized gain/(loss) on unsettled mortgage-backed securities Unrealized gain/(loss) on other investments Unrealized gain/(loss) on derivative instruments Total Accumulated other comprehensive income (loss) at January 1, 2014 $ 109,490 $ - $ (627 ) $ (116,915 ) $ (8,052 ) Other comprehensive income before reclassification 117,310 396 132 5,797 123,635 Balance Sheet Reclassification: Amount reclassified to mortgage-backed securities available for sale - 186 - (1,384 ) (1,198 ) Income Statement Reclassification: Amounts reclassified to net gain on the sale of mortgage-backed securities (2,852 ) - - - (2,852 ) Amounts reclassified for termination of all- in-one cash flow hedge accounting on dollar roll TBAs - - - 5,083 5,083 Amounts reclassified to interest expense - - - 47,607 47,607 Net current period other comprehensive income 114,458 582 132 57,103 172,275 Accumulated other comprehensive income (loss) at June 30, 2014 $ 223,948 $ 582 $ (495 ) $ (59,812 ) $ 164,223

Organization and Business Des30

Organization and Business Description - Additional Information (Details)	6 Months Ended
	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Distributions from taxable income	100.00%

Summary of Significant Accoun31

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Distributions from taxable income			100.00%
Share-based compensation expense	$ 1,034	$ 842	$ 2,079	$ 1,702

Carrying Values and Fair Values

Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
MBS, Carrying Value		$ 16,669,383	$ 17,587,010
Mortgage loans held for investment, Carrying Value		183,320	31,460
Cash and cash equivalents, Carrying Value		588,608	627,595
Unsettled purchased MBS, Carrying Value		57,914	24,792
Receivable for securities sold, Carrying Value			5,197
Accrued interest receivable, Carrying Value		50,620	54,274
Principal payments receivable, Carrying Value		140,508	111,439
Debt security, held-to-maturity, Carrying Value	[1]	15,000	15,000
Short-term investments, Carrying Value	[1]	20,388	20,252
Interest rate swaps and swaptions, Carrying Value	[2]	3,840	11,050
Forward purchase commitments, Carrying Value	[2]	1,197	16,101
Repurchase agreements, Carrying Value		14,993,065	15,759,831
Payable for unsettled securities, Carrying Value		57,917	24,750
Accrued interest payable, Carrying Value		3,990	6,968
Interest rate swap liability, Carrying Value	[3]	19,360	42,052
Futures Contracts liability, Carrying Value	[3]	264,161	202,501
Forward purchase commitments, Carrying Value	[3]	36,190	38
MBS, Fair Value		16,669,383	17,587,010
Mortgage loans held for investment, Fair Value		183,320	31,460
Cash and cash equivalents, Fair Value		588,608	627,595
Unsettled purchased MBS, Fair Value		57,914	24,792
Receivable for securities sold, Fair Value			5,197
Accrued interest receivable, Fair Value		50,620	54,274
Principal payments receivable, Fair Value		140,508	111,439
Debt security, held-to-maturity, Fair Value	[1]	14,741	14,853
Short-term investments, Fair Value	[1]	20,388	20,252
Interest rate swaps and swaptions, Fair Value	[2]	3,840	11,050
Forward purchase commitments, Fair Value	[2]	1,197	16,101
Repurchase agreements, Fair Value		14,993,065	15,759,831
Payable for unsettled securities, Fair Value		57,917	24,750
Accrued interest payable, Fair Value		3,990	6,968
Interest rate swap liability, Fair Value	[3]	19,360	42,052
Futures Contracts liability, Fair Value	[3]	264,161	202,501
Forward purchase commitments, Fair Value	[3]	$ 36,190	$ 38
[1]	Included in other investments on the consolidated balance sheets.
[2]	Included in derivative assets on the consolidated balance sheets.
[3]	Included in derivative liabilities on the consolidated balance sheets.

Schedule of Agency Securities a

Schedule of Agency Securities and MBS Portfolio Includes MBS not Issued or Guaranteed by U.S. Government Agency or U.S. Government Sponsored Entity (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	$ 16,436,094	$ 17,354,770
Gross Unrealized Loss	(21,871)	(35,531)
Gross Unrealized Gain	255,160	267,771
Carrying value/estimated fair value	16,669,383	17,587,010
Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	16,287,810	17,279,316
Gross Unrealized Loss	(20,787)	(35,531)
Gross Unrealized Gain	254,797	267,623
Carrying value/estimated fair value	16,521,820	17,511,408
Non-Agency Securities (ARMs)
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	41,658	75,454
Gross Unrealized Gain	131	148
Carrying value/estimated fair value	41,789	75,602
GSE CRT Bonds
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	106,626
Gross Unrealized Loss	(1,084)
Gross Unrealized Gain	232
Carrying value/estimated fair value	105,774
Fannie Mae Certificates
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	9,596,092	10,315,029
Gross Unrealized Loss	(7,036)	(13,737)
Gross Unrealized Gain	179,741	189,066
Carrying value/estimated fair value	9,768,797	10,490,358
Fannie Mae Certificates | Adjustable Rate Residential Mortgage
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	8,498,889	9,203,741
Gross Unrealized Loss	(5,793)	(13,737)
Gross Unrealized Gain	176,445	183,889
Carrying value/estimated fair value	8,669,541	9,373,893
Fannie Mae Certificates | Fixed-Rate
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	1,097,203	1,111,288
Gross Unrealized Loss	(1,243)
Gross Unrealized Gain	3,296	5,177
Carrying value/estimated fair value	1,099,256	1,116,465
Freddie Mac Certificates
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	6,691,718	6,964,287
Gross Unrealized Loss	(13,751)	(21,794)
Gross Unrealized Gain	75,056	78,557
Carrying value/estimated fair value	6,753,023	7,021,050
Freddie Mac Certificates | Adjustable Rate Residential Mortgage
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	6,550,748	6,805,885
Gross Unrealized Loss	(13,751)	(21,794)
Gross Unrealized Gain	73,666	76,790
Carrying value/estimated fair value	6,610,663	6,860,881
Freddie Mac Certificates | Fixed-Rate
Schedule Of Available For Sale Securities [Line Items]
Agency Securities Amortized Cost	140,970	158,402
Gross Unrealized Gain	1,390	1,767
Carrying value/estimated fair value	$ 142,360	$ 160,169

Components of Carrying Value of

Components of Carrying Value of Available-For-Sale MBS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
Principal balance	$ 15,987,238	$ 16,864,583
Unamortized premium	451,230	490,187
Unamortized discount	(2,374)
Gross unrealized gains	255,160	267,771
Gross unrealized losses	(21,871)	(35,531)
Carrying value/estimated fair value	$ 16,669,383	$ 17,587,010

Schedule Of Interest Income (De

Schedule Of Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investments Debt And Equity Securities [Abstract]
Coupon interest	$ 108,431	$ 114,328	$ 221,909	$ 232,726
Net premium amortization	(32,161)	(24,870)	(59,277)	(46,961)
Interest income	$ 76,270	$ 89,458	$ 162,632	$ 185,765

Gross Gains and Losses from Inv

Gross Gains and Losses from Investment Sales (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investments Debt And Equity Securities [Abstract]
Gross gains	$ (12)	$ 6,076	$ 16,498	$ 13,512
Gross losses	(297)	(10,660)	(354)	(10,660)
Net gain (loss)	$ (309)	$ (4,584)	$ 16,144	$ 2,852

Schedule of MBS in Unrealized L

Schedule of MBS in Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2015USD ($)Securities	Dec. 31, 2014USD ($)Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Market Value - Less than 12 months	$ 2,201,188	$ 1,305,594
Unrealized Loss - Less than 12 months	(6,094)	(2,032)
Fair Market Value - Greater than 12 Months	1,605,476	3,043,913
Unrealized Loss - Greater than 12 Months	(15,777)	(33,499)
Total - Fair Market Value	3,806,664	4,349,507
Total - Unrealized Loss	$ (21,871)	$ (35,531)
Number of securities in an unrealized loss position, Less than 12 Months | Securities	104	56
Number of securities in an unrealized loss position, Greater than 12 Months | Securities	54	108
Number of securities in an unrealized loss position, Total | Securities	158	164
Fannie Mae Certificates | Adjustable Rate Residential Mortgage
Schedule Of Available For Sale Securities [Line Items]
Fair Market Value - Less than 12 months	$ 705,435	$ 806,600
Unrealized Loss - Less than 12 months	(1,435)	(1,240)
Fair Market Value - Greater than 12 Months	572,673	1,306,153
Unrealized Loss - Greater than 12 Months	(4,358)	(12,497)
Total - Fair Market Value	1,278,108	2,112,753
Total - Unrealized Loss	(5,793)	(13,737)
Fannie Mae Certificates | Fixed-Rate
Schedule Of Available For Sale Securities [Line Items]
Fair Market Value - Less than 12 months	540,681
Unrealized Loss - Less than 12 months	(1,243)
Total - Fair Market Value	540,681
Total - Unrealized Loss	(1,243)
Freddie Mac Certificates | Adjustable Rate Residential Mortgage
Schedule Of Available For Sale Securities [Line Items]
Fair Market Value - Less than 12 months	868,320	498,994
Unrealized Loss - Less than 12 months	(2,332)	(792)
Fair Market Value - Greater than 12 Months	1,032,803	1,737,760
Unrealized Loss - Greater than 12 Months	(11,419)	(21,002)
Total - Fair Market Value	1,901,123	2,236,754
Total - Unrealized Loss	(13,751)	$ (21,794)
GSE CRT Bonds
Schedule Of Available For Sale Securities [Line Items]
Fair Market Value - Less than 12 months	86,752
Unrealized Loss - Less than 12 months	(1,084)
Total - Fair Market Value	86,752
Total - Unrealized Loss	$ (1,084)

Mortgage-Backed Securities - Ad

Mortgage-Backed Securities - Additional Information (Details) - 6 months ended Jun. 30, 2015 - USD ($)	Total
Minimum
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of Company's agency securities, in years	15 years
Maximum
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of Company's agency securities, in years	30 years
Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Impairment loss on mortgage-backed securities	$ 0

Mortgage Loans Held for Inves39

Mortgage Loans Held for Investment - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
Unpaid principal balance	$ 179,885	$ 30,792
Fair value	183,320	31,460
Past due on mortgage loan	0	0
Nonaccrual status on mortgage loan	$ 0	$ 0

Geographic Distribution of Mort

Geographic Distribution of Mortgage Loans Held (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	100.00%	100.00%
California
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	60.00%	82.00%
Illinois
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	8.00%	2.00%
Texas
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	8.00%	3.00%
Washington
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	5.00%	2.00%
All Other
Schedule Of Available For Sale Securities [Line Items]
Mortgage loans held	19.00%	11.00%

Components for Mortgage Loan Po

Components for Mortgage Loan Portfolio (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)FICO_Score	Dec. 31, 2014USD ($)FICO_Score
Schedule Of Available For Sale Securities [Line Items]
Unpaid principal balance	$ 179,885,000	$ 30,792,000
Minimum
Schedule Of Available For Sale Securities [Line Items]
Unpaid principal balance	$ 17,000	$ 447,000
Interest rate	2.50%	2.75%
Maturity	2044-05	2044-06
FICO score at loan origination | FICO_Score	700	705
Loan-to-value ratio at loan origination	24.00%	28.00%
Maximum
Schedule Of Available For Sale Securities [Line Items]
Unpaid principal balance	$ 2,000,000	$ 1,332,000
Interest rate	4.13%	3.75%
Maturity	2045-07	2044-12
FICO score at loan origination | FICO_Score	815	813
Loan-to-value ratio at loan origination	80.00%	80.00%
Weighted Average
Schedule Of Available For Sale Securities [Line Items]
Unpaid principal balance	$ 759,000	$ 790,000
Interest rate	3.40%	3.43%
Maturity	2044-12	2044-09
FICO score at loan origination | FICO_Score	769	762
Loan-to-value ratio at loan origination	68.00%	65.00%

Rollforward of Mortgage Loans H

Rollforward of Mortgage Loans Held for Investment (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Investments Debt And Equity Securities [Abstract]
Fair value, beginning of period	$ 123,301	$ 31,460
Principal purchased	71,001	166,770
Principal repaid	(10,293)	(14,465)
Change in fair value	(689)	(445)
Fair value, end of period	$ 183,320	$ 183,320

Schedule of Unobservable Inputs

Schedule of Unobservable Inputs Used in Level 3 Valuation of Mortgage Loans Held for Investment (Details) - Mortgage Held for Investment - Level 3	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	2.00%	3.60%
Conditional refinance rate	11.80%	12.40%
Default rate	0.00%	0.00%
Loss severity	0.00%	10.20%
Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	3.70%	3.90%
Conditional refinance rate	18.70%	19.30%
Default rate	1.70%	1.50%
Loss severity	22.90%	19.90%
Weighted Average
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate	3.50%	3.80%
Conditional refinance rate	14.80%	15.30%
Default rate	0.50%	0.40%
Loss severity	14.20%	13.80%

Summary Of Other Investments (D

Summary Of Other Investments (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Schedule Of Investments [Abstract]
Short-term investments	[1]	$ 20,388	$ 20,252
Debt security, held-to-maturity	[1]	15,000	15,000
Equity investment		6,000	6,000
Total other investments		$ 41,388	$ 41,252
[1]	Included in other investments on the consolidated balance sheets.

Other Investments - Additional

Other Investments - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Schedule Of Held To Maturity Securities [Line Items]
Debt security, held-to-maturity	[1]	$ 15,000	$ 15,000
Equity investment in non-public repurchase lending counterparty		$ 6,000	6,000
Maturity date		Mar. 24, 2019
Debt security bears interest at the rate		The debt security pays interest quarterly at the rate of 4.0% above the three-month London Interbank Offered Rate (“LIBOR”).
Debt security, held-to-maturity, fair value	[1]	$ 14,741	$ 14,853
London Interbank Offered Rate (LIBOR)
Schedule Of Held To Maturity Securities [Line Items]
Debt security, variable rate basis added to LIBOR to determine interest rate		4.00%
[1]	Included in other investments on the consolidated balance sheets.

Repurchase Agreements - Additio

Repurchase Agreements - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)Person	Dec. 31, 2014USD ($)Person
Banking And Thrift [Abstract]
Number of counterparties in repurchase agreements	26	25
Weighted average contractual maturity of the repurchase agreements outstanding	1 month 15 days	1 month
Fair value of assets pledged as collateral under repurchase agreements | $	$ 15,793,188	$ 16,575,106

Contractual Maturity Informatio

Contractual Maturity Information Regarding Repurchase Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets Sold Under Agreements To Repurchase [Line Items]
Repurchase agreements	$ 14,993,065	$ 15,759,831
Weighted Average Contractual Rate	0.40%	0.36%
Within 30 days
Assets Sold Under Agreements To Repurchase [Line Items]
Repurchase agreements	$ 13,493,065	$ 13,770,099
Weighted Average Contractual Rate	0.38%	0.35%
30 days to 3 months
Assets Sold Under Agreements To Repurchase [Line Items]
Repurchase agreements		$ 1,489,732
Weighted Average Contractual Rate	0.00%	0.36%
3 months to 36 months
Assets Sold Under Agreements To Repurchase [Line Items]
Repurchase agreements	$ 1,500,000	$ 500,000
Weighted Average Contractual Rate	0.54%	0.53%

Schedule of Location of Derivat

Schedule of Location of Derivatives on Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivatives Fair Value [Line Items]
Derivative assets	$ 5,037	$ 27,151
Derivative liabilities	319,711	244,591
Interest Rate Swaps and Swaptions | Derivative Assets
Derivatives Fair Value [Line Items]
Derivative assets	3,840	11,050
Forward Purchase Commitments - MBS | Derivative Assets
Derivatives Fair Value [Line Items]
Derivative assets	1,152	16,101
Forward Purchase Commitments - MBS | Derivative Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	36,190	36
Forward Purchase Commitments - Mortgage Loans | Derivative Assets
Derivatives Fair Value [Line Items]
Derivative assets	45
Forward Purchase Commitments - Mortgage Loans | Derivative Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities		2
Interest Rate Swap | Derivative Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	19,360	42,052
Futures Contracts | Derivative Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	$ 264,161	$ 202,501

Derivatives and other Hedging49

Derivatives and other Hedging Instruments - Additional Information (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2015USD ($)Contract	Jun. 30, 2015USD ($)InstrumentsContract	Dec. 31, 2014InstrumentsContract	Jun. 30, 2014Contract	Mar. 31, 2014Contract	Dec. 31, 2013Contract
Derivative [Line Items]
Estimated amount related to derivatives reclassified to interest expense during the next 12 months		$ 10,080,000
Notional Amount		1,400,000,000
Payment on termination of interest rate swaps		$ 5,210,000
Derivative, Maturity Date		Dec. 31, 2015
Adjustable Rate Residential Mortgage
Derivative [Line Items]
Derivative term of contract		15 years
Interest Rate Swaptions
Derivative [Line Items]
Number of derivative instruments outstanding | Instruments		2	4
Proceeds from swaptions termination	$ 2,049,000
Eurodollar Future
Derivative [Line Items]
Notional Amount		$ 1,000,000
Number of derivative instruments outstanding | Contract	128,713	131,276	130,074	123,275	114,325	95,327
Derivative term of contract		3 months
Futures contracts range		2015 through 2022
Fair value of derivatives in net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to agreements		$ 19,360,000

Volume of Activity for Interest

Volume of Activity for Interest Rate Derivative Instruments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative [Line Items]
Notional Value, End of period	$ 1,400,000,000		$ 1,400,000,000
Interest Rate Swap
Derivative [Line Items]
Notional Value, Beginning of period	7,300,000,000	$ 10,100,000,000	8,300,000,000	$ 10,700,000,000
Expirations and terminations	(2,200,000,000)	(200,000,000)	(3,200,000,000)	(800,000,000)
Notional Value, End of period	$ 5,100,000,000	$ 9,900,000,000	$ 5,100,000,000	$ 9,900,000,000

Hedging Exposure Future Cash Fl

Hedging Exposure Future Cash Flows with Interest Rate Swaps For Forecasted Transactions (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 1,400,000,000
Weighted Average Remaining Term in Months	17 months	16 months
Weighted Average Fixed Interest Rate in Contract	0.97%	1.28%
Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 5,100,000,000	$ 8,300,000,000	$ 7,300,000,000	$ 9,900,000,000	$ 10,100,000,000	$ 10,700,000,000
12 Months or Less
Derivative Instruments Gain Loss [Line Items]
Maturity - lower remaining maturity range
Maturity - higher remaining maturity range	12 months	12 months
Weighted Average Remaining Term in Months	8 months	6 months
Weighted Average Fixed Interest Rate in Contract	1.09%	1.73%
12 Months or Less | Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 1,700,000,000	$ 3,700,000,000
Over 12 Months to 24 Months
Derivative Instruments Gain Loss [Line Items]
Maturity - lower remaining maturity range	12 months	12 months
Maturity - higher remaining maturity range	24 months	24 months
Weighted Average Remaining Term in Months	19 months	18 months
Weighted Average Fixed Interest Rate in Contract	0.91%	0.92%
Over 12 Months to 24 Months | Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 2,600,000,000	$ 2,400,000,000
Over 24 Months to 36 Months
Derivative Instruments Gain Loss [Line Items]
Maturity - lower remaining maturity range	24 months	24 months
Maturity - higher remaining maturity range	36 months	36 months
Weighted Average Remaining Term in Months	29 months	29 months
Weighted Average Fixed Interest Rate in Contract	0.93%	0.89%
Over 24 Months to 36 Months | Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Notional Amount	$ 800,000,000	$ 1,800,000,000
Over 36 Months to 48 Months
Derivative Instruments Gain Loss [Line Items]
Maturity - lower remaining maturity range	36 months	36 months
Maturity - higher remaining maturity range	48 months	48 months
Weighted Average Remaining Term in Months		38 months
Weighted Average Fixed Interest Rate in Contract		0.96%
Over 36 Months to 48 Months | Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Notional Amount		$ 400,000,000

Schedule of Outstanding Interes

Schedule of Outstanding Interest Rate Swaptions (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Weighted Average Months to Expiration	17 months	16 months
Notional Amount	$ 1,400,000,000
Options
Derivative [Line Items]
Original Cost	4,000,000	$ 20,080,000
Fair Value	$ 3,221,000	$ 4,561,000
Weighted Average Months to Expiration	9 months	6 months
Underlying Swaps
Derivative [Line Items]
Notional Amount	$ 1,065,000,000	$ 992,300,000
Weighted Average Fixed Pay Rate	3.00%	2.74%
Receive Rate	3 month LIBOR	3 month LIBOR
Weighted Average Term (Years)	5 years	7 years

Schedule of Composition of Futu

Schedule of Composition of Futures Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Total fair value of Futures Contracts	$ (264,161)	$ (202,501)
Futures Contracts Designed to Replicate Swaps
Derivative [Line Items]
Total fair value of Futures Contracts	(262,874)	(202,202)
Futures Contracts Designed to Hedge Value Changes in Forward Purchases
Derivative [Line Items]
Total fair value of Futures Contracts	$ (1,287)	$ (299)

Schedule of Volume of Activity

Schedule of Volume of Activity Futures Contracts (Details) - Eurodollar Future - Contract	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivatives Fair Value [Line Items]
Number of contracts, Beginning of period	128,713	114,325	130,074	95,327
New positions opened	25,499	24,925	46,017	102,746
Early settlements	(13,881)	(14,162)	(27,149)	(70,979)
Settlements at maturity	(9,055)	(1,813)	(17,666)	(3,819)
Number of contracts, End of period	131,276	123,275	131,276	123,275

Schedule of ARM Securities Forw

Schedule of ARM Securities Forward Purchase Commitments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Forward purchase agreements - Face/UPB	$ 4,134,462	$ 3,808,687
Forward purchase agreements - Cost	4,248,576	3,927,034
Forward purchase agreements - Fair Value	4,213,584	3,943,097
Forward purchase agreements - Net Asset (Liability)	(34,992)	16,063
ARMs - Originators
Derivative [Line Items]
Forward purchase agreements - Face/UPB	352,183	376,936
Forward purchase agreements - Cost	359,696	384,673
Forward purchase agreements - Fair Value	360,527	388,829
Forward purchase agreements - Net Asset (Liability)	831	4,156
ARMs - Dealers
Derivative [Line Items]
Forward purchase agreements - Face/UPB	75,000	20,095
Forward purchase agreements - Cost	76,445	20,553
Forward purchase agreements - Fair Value	76,767	20,517
Forward purchase agreements - Net Asset (Liability)	322	(36)
15-year TBA Dollar Roll Securities
Derivative [Line Items]
Forward purchase agreements - Face/UPB	3,655,000	3,400,000
Forward purchase agreements - Cost	3,759,194	3,509,871
Forward purchase agreements - Fair Value	3,723,004	3,521,816
Forward purchase agreements - Net Asset (Liability)	(36,190)	11,945
Whole Mortgage Loans
Derivative [Line Items]
Forward purchase agreements - Face/UPB	52,279	11,656
Forward purchase agreements - Cost	53,241	11,937
Forward purchase agreements - Fair Value	53,286	11,935
Forward purchase agreements - Net Asset (Liability)	$ 45	$ (2)

Gross Amounts Associated with D

Gross Amounts Associated with Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Interest Rate Swap
Derivative [Line Items]
Assets	$ 619	$ 6,489
Net Asset/(Liability)	619	6,489
Interest Rate Swaptions
Derivative [Line Items]
Assets	3,221	4,561
Cash Collateral Posted (Held)	(405)	(1,558)
Net Asset/(Liability)	2,816	3,003
Forward Purchase Commitments
Derivative [Line Items]
Assets	1,197	16,101
Net Asset/(Liability)	1,197	16,101
Second Interest Rate Swap
Derivative [Line Items]
Cash Collateral Posted (Held)	30,115	66,653
Net Asset/(Liability)	10,755	24,601
(Liabilities)	(19,360)	(42,052)
Second Forward Purchase Commitments
Derivative [Line Items]
Cash Collateral Posted (Held)	36,428	5,585
Net Asset/(Liability)	238	5,547
(Liabilities)	(36,190)	(38)
Second Futures Contracts
Derivative [Line Items]
Cash Collateral Posted (Held)	328,881	251,553
Net Asset/(Liability)	64,720	49,052
(Liabilities)	$ (264,161)	$ (202,501)

The Components of Loss on Deriv

The Components of Loss on Derivative Instruments Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	$ (19,415)	$ (55,260)	$ (122,200)	$ (96,875)
Interest Rate Swaps – Net Realized and Unrealized Gains
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	10,497	8,525	11,613	24,388
Interest Rate Swaptions
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	(263)	(2,679)	(3,290)	(2,679)
Interest Rate Swap
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	(15,217)	(29,754)	(36,640)	(59,166)
Futures Contracts
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	32,356	(90,005)	(61,660)	(107,387)
Futures Contracts - Other Realized Losses
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	(299)	(3,647)	(22,673)	(22,253)
Mortgage Loan Purchase Commitments - Fair Value Adjustments
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	(284)		47
TBA Dollar Roll
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	24,901	25,622	48,056	46,443
TBA Dollar Rolls – Net Realized And Unrealized Gains (Losses)
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	(60,032)	$ 36,678	(39,086)	$ 23,779
Futures Contracts - Losses From Maturities
Derivative Instruments Gain Loss [Line Items]
Loss on derivative instruments, net	$ (11,074)		$ (18,567)

Schedule of Interest Rate Swap

Schedule of Interest Rate Swap Agreements on Accumulated Other Comprehensive Income (Details) - Interest Rate Swap - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Beginning balance	$ (16,604)	$ (86,490)	$ (30,042)	$ (111,174)
Reclassification of net losses to the income statement	9,279	22,923	22,717	47,607
Ending balance	$ (7,325)	$ (63,567)	$ (7,325)	$ (63,567)

Capital Stock - Additional Info

Capital Stock - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 18, 2013
Equity [Abstract]
Common stock share authorized to repurchase	7,414,553		7,414,553		10,000,000
Stock repurchased during period, shares	0	100,000	0	100,000
Stock repurchased during period, value		$ 1,912		$ 1,912

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic earnings (loss) per share:
Net income (loss)	$ 24,556	$ (12,477)	$ (9,979)	$ 4,321
Less preferred stock dividends	(5,480)	(5,481)	(10,961)	(10,961)
Net income (loss) available to common shareholders	$ 19,076	$ (17,958)	$ (20,940)	$ (6,640)
Weighted average shares	96,790,541	96,515,599	96,786,890	96,560,590
Basic earnings (loss) per share	$ 0.20	$ (0.19)	$ (0.22)	$ (0.07)
Diluted earnings (loss) per share:
Net income (loss)	$ 24,556	$ (12,477)	$ (9,979)	$ 4,321
Less preferred stock dividends	(5,480)	(5,481)	(10,961)	(10,961)
Net income (loss) available to common shareholders	$ 19,076	$ (17,958)	$ (20,940)	$ (6,640)
Weighted average shares	96,790,541	96,515,599	96,786,890	96,560,590
Diluted weighted average shares	96,790,541	96,515,599	96,786,890	96,560,590
Diluted earnings (loss) per share	$ 0.20	$ (0.19)	$ (0.22)	$ (0.07)

Transactions with Related Par61

Transactions with Related Parties - Additional Information (Details) - Management Fees	1 Months Ended	6 Months Ended
	Oct. 31, 2014USD ($)	Jun. 30, 2015USD ($)Person	Dec. 31, 2014USD ($)
Related Party Transaction [Line Items]
Number of independent directors | Person		6
Management agreement initial expiration date		Feb. 23, 2016
Management agreement additional term of expiration		1 year
Prior notice for uncertain termination (in days)		180 days
Proportion of average annual management fee description		ACA must be provided 180 days prior notice of any such termination and will be paid a termination fee equal to four times the average annual management fee earned by ACA during the two year period immediately preceding termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination.
Period of annual management fees earned (in years)		2 years
Management fee payable		$ 1,947,000	$ 3,198,000
Financial interest at an annual rate	$ 300,000
Company's Equity Up To $250 Million
Related Party Transaction [Line Items]
Management fee payable		$ 250,000,000
Management fee bases per annum		1.50%
Company's Equity In Excess Of $250 Million And Up To $500 Million
Related Party Transaction [Line Items]
Management fee payable		$ 500,000,000
Management fee bases per annum		1.10%
Management fee payable, minimum		$ 250,000,000
Company's Equity In Excess Of $500 Million And Up To $750 Million
Related Party Transaction [Line Items]
Management fee payable		$ 750,000,000
Management fee bases per annum		0.80%
Management fee payable, minimum		$ 500,000,000
Company's Equity In Excess Of $750 Million
Related Party Transaction [Line Items]
Management fee payable		$ 750,000,000
Management fee bases per annum		0.50%

Amounts Incurred for Management

Amounts Incurred for Management Fee and Reimbursable Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Management fee	$ 4,083	$ 4,144	$ 8,178	$ 8,298
Share-based compensation	1,034	842	2,079	1,702
Management Fees
Related Party Transaction [Line Items]
Management fee	4,083	4,144	8,178	8,298
Reimbursable expenses	1,264	876	2,557	1,688
Total	5,347	5,020	10,735	9,986
Share-based compensation	$ 1,034	$ 842	$ 2,079	$ 1,702

Accumulated Other Comprehensi63

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance accumulated other comprehensive income (loss)	$ 294,478	$ 58,553	$ 205,765	$ (8,052)
Other comprehensive income (loss) before reclassification	(71,615)	80,019	24,275	123,635
Amount reclassified to MBS available for sale	(5,642)	(1,856)	(9,804)	(1,198)
Amounts reclassified to net gain/loss on the sale of MBS	309	4,584	(16,144)	(2,852)
Amounts reclassified for termination of all- in-one cash flow hedge accounting on dollar roll TBAs				5,083
Amounts reclassified to interest expense	9,279	22,923	22,717	47,607
Net current period other comprehensive income (loss)	5,584	24,636	19,750	57,103
Other comprehensive income (loss)	(67,669)	105,670	21,044	172,275
Ending balance accumulated other comprehensive income (loss)	226,809	164,223	226,809	164,223
Available for sale MBS
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance accumulated other comprehensive income (loss)	305,906	143,756	232,240	109,490
Other comprehensive income (loss) before reclassification	(72,926)	75,608	17,193	117,310
Amounts reclassified to net gain/loss on the sale of MBS	309	4,584	(16,144)	(2,852)
Net current period other comprehensive income (loss)	(72,617)	80,192	1,049	114,458
Ending balance accumulated other comprehensive income (loss)	233,289	223,948	233,289	223,948
Unsettled MBS
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance accumulated other comprehensive income (loss)	794	(186)	42
Other comprehensive income (loss) before reclassification	(3)	582	791	396
Amount reclassified to MBS available for sale	(794)	186	(836)	186
Net current period other comprehensive income (loss)	(797)	768	(45)	582
Ending balance accumulated other comprehensive income (loss)	(3)	582	(3)	582
Other Investments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance accumulated other comprehensive income (loss)	(466)	(569)	(595)	(627)
Other comprehensive income (loss) before reclassification	161	74	290	132
Net current period other comprehensive income (loss)	161	74	290	132
Ending balance accumulated other comprehensive income (loss)	(305)	(495)	(305)	(495)
Derivative Instruments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(11,756)	(84,448)	(25,922)	(116,915)
Other comprehensive income (loss) before reclassification	1,153	3,755	6,001	5,797
Amount reclassified to MBS available for sale	(4,848)	(2,042)	(8,968)	(1,384)
Amounts reclassified for termination of all- in-one cash flow hedge accounting on dollar roll TBAs				5,083
Amounts reclassified to interest expense	9,279	22,923	22,717	47,607
Net current period other comprehensive income (loss)	5,584	24,636	19,750	57,103
Ending balance	$ (6,172)	$ (59,812)	$ (6,172)	$ (59,812)