Annual report pursuant to Section 13 and 15(d)

Equity Securities, at Fair Value (Notes)

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Equity Securities, at Fair Value (Notes)
12 Months Ended
Dec. 31, 2013
Equity Securities, at Fair Value [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Equity Securities, at Fair Value
At December 31, 2012, equity securities consisted of shares of Silver Bay common stock carried at fair value with changes in fair value recorded in earnings as a result of a fair value option election. In exchange for the contribution of the Company’s equity interests in its wholly owned subsidiary, Two Harbors Property Investment LLC, to Silver Bay on December 19, 2012, the Company received 17,824,647 shares of common stock, or 47.7%, of Silver Bay at the initial public offering price of $18.50. The initial carrying value of the Company’s equity securities was $329.8 million and the carrying value as of December 31, 2012 was $335.6 million, which included $5.9 million in unrealized gains.
On March 18, 2013, the Company declared a special dividend pursuant to which the 17,824,647 shares of Silver Bay common stock was distributed, on a pro rata basis, to the Company’s stockholders of record as of April 2, 2013. The dividend was distributed on or about April 24, 2013. As a result, the Company recognized $13.7 million of realized gains on distribution as well as $5.9 million of change in unrealized losses within gain (loss) on investment securities on the consolidated statements of comprehensive income for the year ended December 31, 2013. Because the shares were distributed to the Company’s stockholders during the year ended December 31, 2013, equity securities are no longer recognized on the consolidated balance sheet as of December 31, 2013.