Company: COHN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033482
Chunk: 206

Company: Cohen & Co Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 206
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 connection with these activities, the Company  may be required to maintain inventory in order to facilitate customer transactions.  In order to mitigate exposure to market risk, the Company  may enter into the purchase and sale of TBAs and other forward agency MBS contracts. 
  (ii)  The Company also enters into TBAs and other forward agency MBS contracts in order to assist clients (generally small to mid-size mortgage loan originators) in hedging the interest rate risk associated with the mortgages owned by these clients. 
  (iii)  Finally, the Company  may enter into TBAs and other forward agency MBS contracts on a speculative basis. 

   The Company carries TBAs and other forward agency MBS contracts at fair value and includes them as a component of investments-trading or trading securities sold, not yet purchased in the Company’s consolidated balance sheets. At  September 30, 2025, the Company had open TBAs and other forward MBS purchase agreements in the notional amount of $1,335,100 and open TBAs and other forward MBS sale agreements in the notional amount of $1,363,150. At  December 31, 2024, the Company had open TBAs and other forward agency MBS purchase agreements in the notional amount of $852,450 and open TBAs and other forward agency MBS sale agreements in the notional amount of $883,900.

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   Other Extended Settlement Trades  
    
   When the Company buys or sells a financial instrument that will not be settled in the regular timeframe, the Company will account for that purchase or sale on the settlement date rather than the trade date.  In those cases, the Company accounts for the transaction between trade date and settlement date as either a forward purchase commitment or a forward sale commitment, which are both considered derivatives.  The Company will record an unrealized gain or unrealized loss on the derivative for the difference between the fair value of the underlying financial instrument as of the reporting date and the agreed upon transaction price. As of  September 30, 2025, the Company had open forward purchase agreements in the notional amount of $1 and open forward sales agreements in the notional amount of $0. As of  December 31, 2024, the Company had no open forward purchase or sales agreements.
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   Foreign Currency Forward Contracts 
    
   The Company invests in foreign currency denominated investments that expose