Note 7 - Financial Instruments

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

7. FINANCIAL INSTRUMENTS

Investments—Trading

Investments-trading consisted of the following.

INVESTMENTS - TRADING

(Dollars in Thousands)

		March 31, 2025				December 31, 2024
Corporate bonds and redeemable preferred stock		$	27,253				27,043
Derivatives			3,886				4,836
Equity securities			867				965
Foreign government bonds			-				88
Municipal bonds			-				19,914
RMBS			5				5
SBA loans			33,804				28,328
U.S. government agency MBS and CMOs			74,941				45,911
U.S. government agency debt securities			17,400				21,242
U.S. Treasury securities			2,410				-
Investments-trading		$	160,566			$	148,332

Substantially all of the Company's investments-trading other than SBA loans serve as collateral for the Company's margin loan payable. See note 6. The SBA loans serve as collateral for the Company's repurchase obligations. See note 10.

Trading Securities Sold, Not Yet Purchased

Trading securities sold, not yet purchased consisted of the following.

TRADING SECURITIES SOLD, NOT YET PURCHASED

(Dollars in Thousands)

		March 31, 2025				December 31, 2024
Corporate bonds and redeemable preferred stock		$	9,059			$	7,342
Derivatives			3,021				4,050
Equity securities			45				83
U.S. government agency debt securities			-				40
U.S. Treasury securities			20,531				24,917
Trading securities sold, not yet purchased		$	32,656			$	36,432

The Company manages its exposure to changes in interest rates for the interest rate sensitive securities it holds by entering into offsetting short positions for similar fixed rate securities. See note 5 for realized and unrealized gains recognized on investments-trading.

Other Investments, at Fair Value

Other investments, at fair value consisted of the following.

OTHER INVESTMENTS, AT FAIR VALUE

(Dollars in Thousands)

		March 31, 2025				December 31, 2024
Equity securities		$	1,167			$	1,954
Equity derivatives			73				73
Restricted equity securities			11,165				10,632
Corporate bonds and redeemable preferred stock			530				531
Notes receivable			8,586				11,250
Interests in SPVs			1,565				1,565
CREO JV			6,503				6,432
U.S. Insurance JV			2,548				2,825
Other investments, at fair value		$	32,137			$	35,262

As of March 31, 2025, $0 of equity securities represented long positions related to share forward arrangements ("SFAs") entered into by the Company. As of December 31, 2024, $470 of unrestricted equity securities represented long positions related to SFAs entered into by the Company. See note 9.

Notes receivable include convertible and non-convertible notes receivable from various counterparties in connection with the Company's advisory business and SFA transactions that may be converted into equity shares. These receivables are carried at fair value.

Interests in SPVs represents consideration the Company has received for services provided by CCM, rather than cash. The SPVs hold convertible notes receivable interests in the counterparties. The Company does not consolidate the SPVs and carries its interests in the SPVs at fair value. See note 8 for discussion of the determination of fair value.

A total of $611 and $1,721 of the amounts shown as other investments, at fair value above served as collateral for the Company's margin loan payable as of March 31, 2025 and December 31, 2024, respectively. See note 6.

Other Investments Sold, Not Yet Purchased, at Fair Value

Other investments sold, not yet purchased, at fair value consisted of the following.

OTHER INVESTMENTS SOLD, NOT YET PURCHASED, AT FAIR VALUE

(Dollars in Thousands)

		March 31, 2025				December 31, 2024
Equity securities		$	-			$	1,181
Share forward liabilities			-				470
Other investments sold, not yet purchased, at fair value		$	-			$	1,651

Share forward liabilities represent derivative positions related to SFAs entered into by the Company.