Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 126

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7A
Chunk 126
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. Some of these investments bear a floating rate of interest which subjects the Company to cash flow risk based upon changes in the underlying interest rate index. As noted above in the discussion of risks related to floating rate borrowings, the Company mitigates a significant amount of our floating rate risk by matching the funding of such investments with borrowings based upon the same interest rate index. Additionally, fair values of interest rate sensitive instruments may be affected by the creditworthiness of the issuer, prepayment options, relative values of alternative investments, the liquidity of the instrument and other general market conditions. 

As of December 31, 2024, we had $1,157.3 million invested in interest bearing instruments, which represents 74.8% of the total investment portfolio (including cash and cash equivalents). The estimated effects of a hypothetical increase in interest rates of 100 bps would result in a decrease to the fair value of the portfolio by $38.7 million. As of December 31, 2023, we had $879.6 million invested in interest bearing instruments, which represented 66% of the total investment portfolio. The estimated effects of a hypothetical increase in interest rates of 100 bps would result in a decrease to the fair value of the portfolio by $26.8 million.

79

Credit Risk

We are exposed to credit risk in the form of available for sale securities, investments in loans, and other investments as follows:

($ in thousands)As of December 31,20242023Available for sale securities, at fair value (1)Obligations of state and political subdivisions$38,675 $45,459 Corporate securities598,134 254,598 Asset backed securities 22,860 26,186 Certificates of deposit1,145 1,724 Obligations of foreign governments51,472 4,557 Loans, at fair value(2)Corporate loans10,272 11,218 Other investments(3)Corporate bonds, at fair value3,331 62,081 Debentures25,320 25,648 Investment in credit fund21,332 11,830 Other— 7,201 Total$772,541 $450,502 

(1)    The Company also holds investments in U.S. Treasury securities and obligations of U.S. government authorities and agencies of $395.6 million and $470.1 million as of December 31,