Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 2830

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 6
Chunk 2830
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 liabilities of SFA transactions as of the reporting period dates.
    
   SHARE FORWARD ARRANGEMENTS
   (Dollars in Thousands)

       December 31, 2024    December 31, 2023  
 Equity securities  $470  $26,079 
 Equity derivatives   -   1,447 
 Notes receivable   -   6,278 
 Share forward liabilities   -   (24,645)
 Net fair value of share forward arrangements  $470  $9,159 

   The Company entered into SFAs primarily through its consolidated subsidiary, Vellar GP.  See note 31 for discussion of sale of the Company's interest in Vellar GP subsequent to year end. Therefore, the Company does not expect to have significant SFA activity in the future.  

        F-
       35

   11. COLLATERALIZED SECURITIES TRANSACTIONS 
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   Gestation Repo 
   ﻿ 
   Gestation repo involves entering into repo and reverse repo transactions where the underlying collateral security represents a pool of newly issued mortgage loans.  The borrowers (the reverse repo counterparties) are generally mortgage originators.  The lenders (the repo counterparties) are a diverse group of the 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.