Company: COHN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007158
Chunk: 2351

Company: Cohen & Co Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 4
Chunk 2351
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 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 agency obligations.  In 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. 

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   The Company carries the 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  December 31, 2024, the Company had open TBA and other forward MBS purchase agreements in the notional amount of $852,450 and open TBA and other forward MBS sale agreements in the notional amount of $883,900. At  December 31, 2023, the Company had open TBA and other forward agency MBS purchase agreements in the notional amount of $