| Fair Value |
4. Fair Value
All of the instruments within cash and cash equivalents and
investments in securities are measured at fair value, except for those investments designated as held-to-maturity. The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy in accordance
with the FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”), guidance on fair value measurement. The levels of the fair value hierarchy and their applicability to the Company are described below:
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-
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Level 1 - the valuation methodology utilizes quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. Level 1 assets include cash equivalents, government obligations, open-end funds, closed-end funds, and listed equities.
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-
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Level 2 - the valuation methodology utilizes inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for
similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates
and yield curves that are observable at commonly-quoted intervals.
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-
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Level 3 - the valuation methodology utilizes unobservable inputs for the asset or liability, and includes situations where there is little, if any, market activity for the asset or
liability.
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The following tables summarize the Company’s assets and
liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of December 31, 2021 and 2020 (in thousands):
Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2021
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Assets
|
|
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
|
Significant
Unobservable
Inputs (Level 3)
|
|
|
Balance as of
December 31,
2021
|
|
|
Cash equivalents
|
|
$
|
141,394
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
141,394
|
|
|
Investments in securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks
|
|
|
16,210
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16,210
|
|
|
Actively managed semi-transparent ETFs
|
|
|
9,599
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,599
|
|
|
Open-end Funds
|
|
|
5,995
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,995
|
|
|
Closed-end Funds
|
|
|
534
|
|
|
|
-
|
|
|
|
-
|
|
|
|
534
|
|
|
Other
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
Total investments in securities
|
|
|
32,344
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,344
|
|
|
Total assets at fair value
|
|
$
|
173,738
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
173,738
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2020
|
Assets
|
|
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
|
Significant
Unobservable
Inputs (Level 3)
|
|
|
Balance as of
December 31,
2020
|
|
|
Cash equivalents
|
|
$
|
32,661
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
32,661
|
|
|
Investments in securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks
|
|
|
19,099
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,099
|
|
|
Open-end Funds
|
|
|
6,128
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,128
|
|
|
Closed-end Funds
|
|
|
618
|
|
|
|
-
|
|
|
|
-
|
|
|
|
618
|
|
|
Total investments in securities
|
|
|
25,845
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,845
|
|
|
Total assets at fair value
|
|
$
|
58,506
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
58,506
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold, not yet purchased:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading - Common stocks
|
|
|
799
|
|
|
|
-
|
|
|
|
-
|
|
|
|
799
|
|
|
Total securities sold, not yet purchased
|
|
|
799
|
|
|
|
-
|
|
|
|
-
|
|
|
|
799
|
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Financial assets disclosed but not carried at fair value
The following table presents the carrying value and fair value of the Company’s short-term investments in U.S. Treasury Bills as of December 31, 2021 and 2020 (in
thousands):
| |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
| |
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Carrying
Value
|
|
|
Fair Value
Level 1
|
|
|
Carrying
Value (1)
|
|
|
Fair Value
Level 1
|
|
|
U.S. Treasury Bills
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
64,988
|
|
|
$
|
64,994
|
|
|
Total
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
64,988
|
|
|
$
|
64,994
|
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At December 31, 2021 and 2020, the 5.875% senior notes due June 1, 2021 (“Senior Notes”) and the Subordinated Notes were recorded at face value, net of amortized issuance costs, as
follows (in thousands) on the consolidated statements of financial condition:
| |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
| |
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Carrying
Value
|
|
|
Fair Value
Level 2
|
|
|
Carrying
Value
|
|
|
Fair Value
Level 2
|
|
|
5.875% Senior notes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
24,215
|
|
|
$
|
24,554
|
|
|
Subordinated Notes
|
|
|
50,990
|
|
|
|
50,990
|
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
$
|
50,990
|
|
|
$
|
50,990
|
|
|
$
|
24,215
|
|
|
$
|
24,554
|
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The carrying value of other financial assets and liabilities approximates their fair value based on the short-term nature of these items.
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