eTrade 2007 Annual Report Download - page 48
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Available-for-Sale Mortgage-Backed and Investment Securities
Available-for-sale securities are summarized as follows (dollars in thousands):
December 31,
Variance
2007 vs. 2006
2007 2006 Amount %
Mortgage-backed securities:
Backed by U.S. government sponsored and
Federal agencies $ 9,330,129 $ 9,109,307 $ 220,822 2 %
Collateralized mortgage obligations and other 1,123,255 1,108,385 14,870 1 %
Total mortgage-backed securities 10,453,384 10,217,692 235,692 2 %
Investment securities:
Asset-backed securities — 2,161,728 (2,161,728) (100)%
Municipal bonds 314,348 632,747 (318,399) (50)%
Publicly traded equity securities:
Preferred stock 371,404 458,674 (87,270) (19)%
Corporate investments 1,271 24,139 (22,868) (95)%
Other 114,641 182,791 (68,150) (37)%
Total investment securities 801,664 3,460,079 (2,658,415) (77)%
Total available-for-sale securities $11,255,048 $13,677,771 $(2,422,723) (18)%
Available-for-sale securities represented 20% and 25% of total assets at December 31, 2007 and 2006,
respectively. Available-for-sale securities decreased 18% to $11.3 billion at December 31, 2007 compared to
December 31, 2006, due primarily to the sale of our asset-backed securities portfolio in the fourth quarter of
2007. Substantially all mortgage-backed securities backed by U.S. Government sponsored and Federal agencies
are “AAA” rated and the majority of the asset-backed securities portfolio consisted of “AA” or higher rated
securities. In the future, we plan to allow our mortgage-backed securities portfolio to pay down, resulting in an
overall decline in the available-for-sale securities balance.
Margin Receivables
The margin receivables balance is a component of the margin debt balance, which is reported as a key retail
metric of $7.3 billion and $7.0 billion at December 31, 2007 and 2006, respectively. The total margin debt
balance is summarized as follows (dollars in thousands):
December 31,
Variance
2007 vs. 2006
2007 2006 Amount %
Margin receivables $7,179,175 $6,828,448 $350,727 5 %
Margin held by third parties and other 81,669 174,652 (92,983) (53)%
Margin debt $7,260,844 $7,003,100 $257,744 4 %
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