Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents and Restricted Cash

v3.21.1
Cash, Cash Equivalents and Restricted Cash
3 Months Ended
Mar. 31, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis.
The Company is required to maintain certain cash balances with counterparties for securities and derivatives trading activity, servicing activities and collateral for the Company’s borrowings in restricted accounts. The Company has also placed cash in a restricted account pursuant to a letter of credit on an office space lease.
The following table presents the Company’s restricted cash balances as of March 31, 2021 and December 31, 2020:
(in thousands) March 31,
2021
December 31,
2020
Restricted cash balances held by trading counterparties:
For securities trading activity $ 26,800  $ 44,800 
For derivatives trading activity 123,802  70,600 
For servicing activities 18,920  19,768 
As restricted collateral for borrowings
643,072  1,126,439 
Total restricted cash balances held by trading counterparties 812,594  1,261,607 
Restricted cash balance pursuant to letter of credit on office lease 60  60 
Total $ 812,654  $ 1,261,667 

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 that sum to the total of the same such amounts shown in the statements of cash flows:
(in thousands) March 31,
2021
December 31,
2020
Cash and cash equivalents $ 1,159,306  $ 1,384,764 
Restricted cash 812,654  1,261,667 
Total cash, cash equivalents and restricted cash $ 1,971,960  $ 2,646,431