Securities Held for Trading
 12 Months Ended
Dec. 31, 2013
Trading Securities [Abstract]  
Securities Held for Trading [Text Block]
        
   December 31,
(In thousands)  2013 2012
Mortgage-backed securities $ 524 $ 619
Variable rate IOs   24,533   41,547
Fixed rate IOs   83   122
Derivatives (1)   286   15
Total $ 25,426 $ 42,303

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  • Refer to note 31 for additional information regarding the notional amount of derivatives.

 

The weighted-average yield is computed based on amortized cost and, therefore, does not give effect to changes in fair value. As of December 31, 2013 and 2012 weighted-average yield, including IOs, was 12.80% and 13.47%, respectively.

 

The components of net (loss) gain on trading assets and derivatives are as follows:
         
 Year ended December 31,
(In thousands)2013 2012 2011
(Loss) gain on IO valuation$ (11,609) $ 4,019 $ 7,481
(Loss) gain on MSR economic hedge  (2,322)   652   1,464
Gain (loss) on hedging derivatives  4,982   (7,022)   (4,938)
Total$ (8,949) $ (2,351) $ 4,007

The table above does not include the net gain on sale of securities held for trading of $32.5 million, $51.1 million and $26.7 million for the years ended December 31, 2013, 2012 and 2011, respectively, which is included within net gain on loans securitized and sold and capitalization of mortgage servicing in the consolidated statements of operations.