51 unchanged sentences
(1) our collateralized securities transactions described in note 11 to our consolidated financial statements included in this Annual Report on Form 10-K and (2) our TBA and other forward agency MBS activities described in note 10 to our consolidated financial statements included in this Annual Report on Form 10-K.
−Removed: With respect to the matched book repo financing activities, our risk is that the counterparty does not fulfill its obligation to repurchase the underlying security when it is due.
+Added: With respect to the gestation repo financing activities, our risk is that the counterparty does not fulfill its obligation to repurchase the underlying security when it is due.
In this case, we would typically liquidate the underlying security, which may result in a loss if the security has declined in value in relation to the balance due from the counterparty under the reverse repurchase agreement.
24 unchanged sentences
However, some of our TBA and other forward agency MBS activities are done without initial margin or cash deposits.
−Removed: Risks Related to our Matched Book Repo Business
−Removed: We enter into repurchase and reverse repurchase agreements as part of our matched book repo business.
+Added: Risks Related to our Gestation Repo Business
+Added: We enter into repurchase and reverse repurchase agreements as part of our gestation repo business.
In general, we will lend money to a counterparty after obtaining collateral securities from that counterparty pursuant to a reverse repurchase agreement.
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.