Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 797

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 14
Chunk 797
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   N/A – Not applicable.
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   (a)The CREO JV invests in primarily multi-family commercial real estate mortgage-backed loans.
 (b)  The U.S. Insurance JV invests in USD denominated debt issued by small and medium sized insurance and reinsurance companies. 

        F-
       32

   10. DERIVATIVE FINANCIAL INSTRUMENTS 
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   The Company  may, from time to time, enter into the following derivative instruments:
    
   Equity Derivatives
    
   A significant portion of the Company’s equity holdings are carried at fair value.  From time to time, the Company hedges a portion of this exposure by entering into equity derivatives such as puts and short call options.  These derivative positions are held at fair value as a component of other investments, at fair value and other investments sold, not yet purchased in the Company’s consolidated balance sheets.  As of  December 31, 2024 and  December 31, 2023, the Company had no options. From time to time, the Company  may also enter into forward purchase commitments for equity securities.  
    
   In addition, the Company  may engage in advisory transactions that result in a receivable that can be paid in cash or a variable number of equity instruments.  In such instances, the Company would record the receivable as a component of other assets in its consolidated balance sheets and record the equity component as an embedded derivative.  All equity derivatives are carried at fair value as a component of other investments, at fair value or other investments sold, not yet purchased in the Company’s consolidated balance sheets.  As of  December 31, 2024 and  December 31, 2023, the Company had equity derivatives included in other investments at fair value of $73 and $1,447, respectively.
    
   The Company  may hedge a portion of the exposure from these equity investments by entering into short trades.  These short trades are not treated as derivatives and are carried as a component of other investments sold, not yet purchased in the Company's consolidated balance sheets.  See note 8.
    
   TBAs and Other Forward Agency MBS Contracts 
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   The Company enters into TBAs and other forward agency MBS transactions for three main reasons.
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     (i)  The Company trades U.S. government