Company: COHN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033482
Chunk: 46

Company: Cohen & Co Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 46
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 counterparties) are generally mortgage originators. The lenders (the repo counterparties) are a diverse group of counterparties comprised of banks, insurance companies, and other financial institutions. The Company self-clears its gestation repo transactions.
    
   Gestation trades can be structured in two ways:
    
   On Balance Sheet: The Company executes a reverse repo with the borrower and a matching repo (with the same collateral and maturity date) with the lender. In this case, the Company is a principal to each trade and is borrowing from one counterparty and lending to another and earning net interest margin. These transactions are referred to by the Company as on balance sheet gestation repo trades.
    
   Agency Repo: Similar to the on balance sheet repo, the Company first executes a reverse repo with the borrower and a matching repo (with the same collateral and maturity date) with the lender. However, in this case, all three parties (the borrower, the lender, and the Company) simultaneously enter into an assignment agreement. The effect of this assignment is to remove the Company as principal to the reverse repo and repo and have the lender and borrower directly face each other in a repo trade. The Company receives a fee for its role in arranging the financing. These transactions are referred to by the Company as agency gestation repo trades.
    
   Other Repo Transactions 
    
   In addition to the Company’s gestation repo business, the Company  may also enter into reverse repos to acquire securities to cover short positions or as an investment.  Additionally, the Company  may enter into repos to finance the Company’s securities positions held in inventory.  These repo and reverse repo agreements are generally cleared on a bilateral or triparty basis; no clearing broker is involved.
    
   Repo Information 
    
   As of  September 30, 2025 and  December 31, 2024, the Company held reverse repos of $414,710 and $668,259, respectively, and the fair value of collateral received under reverse repos was $418,465 and $673,684, respectively. 
    
   As of  September 30, 2025 and  December 31, 2024, the Company held repos of $457,058 and $695,966, respectively, and the fair value of securities and cash pledged as collateral under repos was $461,955 and $700,202, respectively. These amounts include collateral for reverse repos that were re