Company: COHN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033482
Chunk: 208

Company: Cohen & Co Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 208
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   Principal transactions and other income (loss)   -   6,414 
    $941  $6,031 

   The share forward liabilities offset certain long positions included as a component of other investments, at fair value.  The offsetting long positions had income / (loss) of $0 and ($2,950) for the three months ended  September 30, 2025 and 2024, respectively. 

         Nine Months Ended September 30,  
 Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815   Income Statement Classification   2025    2024  
 TBAs and other forward agency MBS   Revenue-net trading  $2,163  $3,024 
 Equity derivatives   Principal transactions and other income (loss)   135   (1,447)
 Share forward liability   Principal transactions and other income (loss)   -   22,746 
    $2,298  $24,323 

   The share forward liabilities offset certain long positions included as a component of other investments, at fair value.  The offsetting long positions had income / (loss) of $0 and ($20,038) for the nine months ended  September 30, 2025 and 2024, respectively. 

       29

   10. COLLATERALIZED SECURITIES TRANSACTIONS 
    
   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 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