the following table provides quarterly information on weighted average effective yields by type of mbs investment as well as other information : 31 replace_table_token_8_th ( 1 ) represents a non-gaap financial measure . please refer to the discussion regarding the use of non-gaap financial measures and to the corresponding reconciliations of gaap to non-gaap financial measures provided in item 6 of this annual report on form 10-k. trends and recent market impacts there are certain conditions and prospective trends in the marketplace that have impacted our financial condition and results of operations and which may continue to impact us in the future . conditions and trends that had significant developments during 2014 and that may impact us in 2015 are discussed below . federal reserve monetary policy the fomc has held the targeted federal funds rate in a range of 0.00 % - 0.25 % since the end of 2008. the fomc has indicated that it will assess progress towards its objectives of maximum employment and 2 % inflation in determining how long to maintain the current target range . the fomc has also indicated that it believes that it can be patient in beginning to normalize the stance of monetary policy , although the pace of normalization will depend on the speed of progress toward its objectives . recent fomc releases seem to indicate that the fomc may begin monetary policy normalization in mid-2015 . given the uneven economic performance in the u.s. , the lack of consistent global economic growth , and current and developing geopolitical risks , it is possible that the fomc delays policy normalization or perhaps only modestly increases the targeted rate by 0.25 % or 0.50 % while it evaluates the impact of tighter credit on the u.s. economy . the fomc also continues to reinvest principal payments received on fixed-rate agency mbs purchased under its now-ended asset purchase programs , collectively known as `` qe3 `` . at its peak in 2014 , the fomc was purchasing $ 85 billion per month in securities . during the fourth quarter of this year , agency mbs net supply turned positive for the first time in several quarters , a trend which is likely to continue . this trend of positive net supply could negatively impact prices of fixed-rate agency mbs and may , by extension , impact prices of certain agency hybrid arms as well . asset credit spreads asset credit spreads are defined as the difference between the yields on securities with credit , prepayment or other risks and yields on benchmark securities without these risks ( typically treasuries or swaps ) , and that reflects the relative riskiness of owning the securities versus the benchmark . changes in asset credit spreads result from changes in the perceived riskiness of an investment versus its benchmark . asset credit spreads tightened dramatically in 2014 due in part to federal reserve policy , supply and demand imbalances leading to increased competition for assets , and global market liquidity from central bank activities . asset credit spreads widened modestly in the fourth quarter of 2014 as interest rates rallied and markets generally reduced risk . during the fourth quarter of 2014 , we continued to sell assets at most risk to spread widening . we continue to believe that global events 32 will lead to periods of spread volatility in 2015. in general , central bank policy and excess global liquidity have contributed to very low interest rates and a lower volatility environment , and investors in fixed income securities have bid asset prices up as a result as they pursue asset yields . the tight credit spread environment is one of the primary reasons that the company sold certain cmbs and cmbs io assets during the second half of 2014. regulatory uncertainty and reform since the financial crisis erupted in 2007 , regulators of financial institutions such as the federal reserve , the federal deposit insurance corporation , and the office of the comptroller of the currency have adopted regulatory requirements designed to enhance and maintain financial stability . financial institutions , particularly larger ones , are now generally subject to higher capital requirements and have reduced their reliance on lower cost , short-term funding sources . broker-dealer subsidiaries of financial institutions are our primary counterparties for repurchase agreement borrowings . in addition , certain regulations for money market funds have been instituted to address the risk of potential investor runs . money market funds are an important source of liquidity for the repurchase agreement market . these new financial regulations will be effective beginning in 2015 and through 2018 , although many institutions have begun initiatives to comply at a more rapid pace . we have been considering the potential impact of these new regulations on our counterparties and have been managing our financings in an effort to minimize the potential for our borrowing costs to increase . because we expect the new regulations may lead toward increasing our borrowing costs on repurchase agreements , we are evaluating alternative sources of funding including sources other than broker-dealer subsidiaries of large financial institutions . gse reform policy makers in washington dc continue to debate the future of fannie mae and freddie mac 's participation in the u.s. mortgage market . several bills have been introduced in the u.s. senate and the u.s. house of representatives regarding the reform and or dissolution of the gses . gse reform has been a very slow process given the continued softness in the housing market and the subdued pace of overall economic growth . the federal housing finance agency ( `` fhfa `` ) has offered details on a single mbs security platform that would combine elements of fannie mae 's and freddie mac 's current mbs features , which has a goal of eliminating pricing discrepancies in the two entities ' securities and to increase liquidity to benefit the housing market . story_separator_special_tag we use both pay-fixed and receive-fixed interest rate swaps to manage our overall hedge position . as of december 31 , 2014 , the weighted average notional amount of interest rate derivatives that will be effective for future periods are shown in the following table : 39 replace_table_token_20_th ( 1 ) weighted average rate is based on the weighted average notional outstanding . please refer to note 6 of the notes to the consolidated financial statements contained with this annual report on form 10-k as well as `` loss on derivative instruments , net `` within `` results of operations `` contained within this item 7 for additional information related to our derivative assets and liabilities . repurchase agreements our repurchase agreement borrowings have decreased $ 567.6 million from december 31 , 2013 to december 31 , 2014 because we have slowed our reinvestment of principal payments and sale proceeds received on our mbs . in addition , the majority of our purchases during the past twelve months have been for non-agency investments for which we typically borrow a lower percentage of the asset 's value . the following tables present the leverage against the amortized cost and fair value of our non-agency cmbs and cmbs io investments by credit rating of the collateral pledged as of december 31 , 2014 and december 31 , 2013 : replace_table_token_21_th 40 please refer to note 5 of the notes to the consolidated financial statements contained within this annual report on form 10-k as well as `` interest expense , annualized cost of funds , and effective borrowings costs `` within `` results of operations `` and “ liquidity and capital resources ” contained within this item 7 for additional information relating to our repurchase agreements . results of operations in addition to our operating results presented in accordance with gaap , our results of operations discussed below contain certain non-gaap financial measures including core net operating income , adjusted net interest income , and effective borrowing cost and certain financial metrics derived from non-gaap information , such as adjusted net interest spread and effective borrowing rate . schedules reconciling these non-gaap financial measures to gaap financial measures are provided in item 6 within part ii of this annual report on from 10-k. as discussed in more detail below , management believes these non-gaap financial measures are useful because they provide investors greater transparency to the information we use in our financial and operational decision-making processes . management also believes the presentation of these measures , when analyzed in conjunction with the our gaap operating results , allows investors to more effectively evaluate and compare our performance to that of our peers . however , because such measures are incomplete measures of our financial performance and involve differences from results computed in accordance with gaap , these non-gaap measures should be considered as a supplement to , and not as a substitute for , our gaap results as reported in our consolidated statements of comprehensive income ( loss ) . in addition , because not all companies use identical calculations , our presentation of such non-gaap measures may not be comparable to other similarly-titled measures of other companies . interest income and asset yields interest income includes gross interest earned from the coupon rate on the securities , effects of premium amortization and discount accretion , and other interest income resulting from prepayment penalty income or other yield maintenance items . the following tables present information regarding interest income earned and effective yield on our mbs by collateral type for the periods indicated : replace_table_token_22_th 41 replace_table_token_23_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) effective yields are weighted by average balance of the investments and based on annualized amounts . recalculation of effective yields may not be possible using data provided because certain components of interest income use a 360-day year for the calculation while others use actual number of days in the year . the following table presents the estimated impact of changes in average balances and average yields on the increase ( decrease ) in interest income for the periods indicated : replace_table_token_24_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) amount includes other interest income amounts of $ 3.9 million , $ 3,2 million , and $ 1.6 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively , related to prepayment penalty income and other yield maintenance items . the majority of the other interest income amounts for the years ended december 31 , 2014 and december 31 , 2013 related to cmbs io and the majority of the other interest income amount for the year ended december 31 , 2012 related to cmbs . our interest income from mbs for the year ended december 31 , 2014 decreased compared to the year ended december 31 , 2013 due to a decrease in the average balance of our mbs portfolio and a decrease in the weighted average effective yield earned on our mbs portfolio . the balance of our investment portfolio declined throughout the year as the proceeds we received from sales of and principal repayments on our mbs were used to pay down our repurchase agreements borrowings rather than fully reinvesting into new assets . our purchases of new assets declined during 2014 as there were fewer opportunities to add investments with acceptable risk and return profiles . average yields on our mbs were lower as purchases across the portfolio 42 were made at lower yields , in particular cmbs io , and we experienced downward resets in interest rates on our variable-rate securities during 2014. our interest income

liquidity and capital resources our primary sources of liquidity include borrowings under repurchase arrangements , monthly principal and interest payments we receive on our investments , unencumbered agency mbs , and unencumbered cash . additional sources may also include proceeds from the sale of investments , equity offerings , issuances of collateralized financings , and payments received from counterparties from interest rate swap agreements . we use our liquidity to fund our investment purchases and other operating costs , to pay down borrowings , to make payments to counterparties as required under interest rate swap agreements , and to pay dividends on our common stock . our available liquid assets as of december 31 , 2014 were $ 215.8 million compared to $ 208.7 million as of december 31 , 2013 . as of december 31 , 2014 , our liquid assets consist of unrestricted cash and cash equivalents of $ 43.9 million and $ 171.8 million in unencumbered agency mbs . unencumbered agency mbs are considered part of our liquid assets as we may pledge them to lenders and interest rate swap counterparties if we experience a margin call ( discussed further below ) . we do not include unencumbered non-agency mbs as liquid assets given the uncertainty of their liquidity in times of market stress . we continually monitor our current and forecasted available liquidity . our liquid assets may fluctuate from period to period based on our investment activities and whether we have recently raised , but not yet deployed , equity capital . however , we seek to maintain sufficient liquidity based on the sensitivity analysis and debt-to-equity requirements discussed below , to support our operations and meet our anticipated liquidity needs . we perform sensitivity analysis on our liquidity based on changes in the value of our investments due to changes in interest rates , credit spreads , lender haircuts and prepayment speeds .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our primary sources of liquidity include borrowings under repurchase arrangements , monthly principal and interest payments we receive on our investments , unencumbered agency mbs , and unencumbered cash . additional sources may also include proceeds from the sale of investments , equity offerings , issuances of collateralized financings , and payments received from counterparties from interest rate swap agreements . we use our liquidity to fund our investment purchases and other operating costs , to pay down borrowings , to make payments to counterparties as required under interest rate swap agreements , and to pay dividends on our common stock . our available liquid assets as of december 31 , 2014 were $ 215.8 million compared to $ 208.7 million as of december 31 , 2013 . as of december 31 , 2014 , our liquid assets consist of unrestricted cash and cash equivalents of $ 43.9 million and $ 171.8 million in unencumbered agency mbs . unencumbered agency mbs are considered part of our liquid assets as we may pledge them to lenders and interest rate swap counterparties if we experience a margin call ( discussed further below ) . we do not include unencumbered non-agency mbs as liquid assets given the uncertainty of their liquidity in times of market stress . we continually monitor our current and forecasted available liquidity . our liquid assets may fluctuate from period to period based on our investment activities and whether we have recently raised , but not yet deployed , equity capital . however , we seek to maintain sufficient liquidity based on the sensitivity analysis and debt-to-equity requirements discussed below , to support our operations and meet our anticipated liquidity needs . we perform sensitivity analysis on our liquidity based on changes in the value of our investments due to changes in interest rates , credit spreads , lender haircuts and prepayment speeds .
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 Suspicious Activity Report : the following table provides quarterly information on weighted average effective yields by type of mbs investment as well as other information : 31 replace_table_token_8_th ( 1 ) represents a non-gaap financial measure . please refer to the discussion regarding the use of non-gaap financial measures and to the corresponding reconciliations of gaap to non-gaap financial measures provided in item 6 of this annual report on form 10-k. trends and recent market impacts there are certain conditions and prospective trends in the marketplace that have impacted our financial condition and results of operations and which may continue to impact us in the future . conditions and trends that had significant developments during 2014 and that may impact us in 2015 are discussed below . federal reserve monetary policy the fomc has held the targeted federal funds rate in a range of 0.00 % - 0.25 % since the end of 2008. the fomc has indicated that it will assess progress towards its objectives of maximum employment and 2 % inflation in determining how long to maintain the current target range . the fomc has also indicated that it believes that it can be patient in beginning to normalize the stance of monetary policy , although the pace of normalization will depend on the speed of progress toward its objectives . recent fomc releases seem to indicate that the fomc may begin monetary policy normalization in mid-2015 . given the uneven economic performance in the u.s. , the lack of consistent global economic growth , and current and developing geopolitical risks , it is possible that the fomc delays policy normalization or perhaps only modestly increases the targeted rate by 0.25 % or 0.50 % while it evaluates the impact of tighter credit on the u.s. economy . the fomc also continues to reinvest principal payments received on fixed-rate agency mbs purchased under its now-ended asset purchase programs , collectively known as `` qe3 `` . at its peak in 2014 , the fomc was purchasing $ 85 billion per month in securities . during the fourth quarter of this year , agency mbs net supply turned positive for the first time in several quarters , a trend which is likely to continue . this trend of positive net supply could negatively impact prices of fixed-rate agency mbs and may , by extension , impact prices of certain agency hybrid arms as well . asset credit spreads asset credit spreads are defined as the difference between the yields on securities with credit , prepayment or other risks and yields on benchmark securities without these risks ( typically treasuries or swaps ) , and that reflects the relative riskiness of owning the securities versus the benchmark . changes in asset credit spreads result from changes in the perceived riskiness of an investment versus its benchmark . asset credit spreads tightened dramatically in 2014 due in part to federal reserve policy , supply and demand imbalances leading to increased competition for assets , and global market liquidity from central bank activities . asset credit spreads widened modestly in the fourth quarter of 2014 as interest rates rallied and markets generally reduced risk . during the fourth quarter of 2014 , we continued to sell assets at most risk to spread widening . we continue to believe that global events 32 will lead to periods of spread volatility in 2015. in general , central bank policy and excess global liquidity have contributed to very low interest rates and a lower volatility environment , and investors in fixed income securities have bid asset prices up as a result as they pursue asset yields . the tight credit spread environment is one of the primary reasons that the company sold certain cmbs and cmbs io assets during the second half of 2014. regulatory uncertainty and reform since the financial crisis erupted in 2007 , regulators of financial institutions such as the federal reserve , the federal deposit insurance corporation , and the office of the comptroller of the currency have adopted regulatory requirements designed to enhance and maintain financial stability . financial institutions , particularly larger ones , are now generally subject to higher capital requirements and have reduced their reliance on lower cost , short-term funding sources . broker-dealer subsidiaries of financial institutions are our primary counterparties for repurchase agreement borrowings . in addition , certain regulations for money market funds have been instituted to address the risk of potential investor runs . money market funds are an important source of liquidity for the repurchase agreement market . these new financial regulations will be effective beginning in 2015 and through 2018 , although many institutions have begun initiatives to comply at a more rapid pace . we have been considering the potential impact of these new regulations on our counterparties and have been managing our financings in an effort to minimize the potential for our borrowing costs to increase . because we expect the new regulations may lead toward increasing our borrowing costs on repurchase agreements , we are evaluating alternative sources of funding including sources other than broker-dealer subsidiaries of large financial institutions . gse reform policy makers in washington dc continue to debate the future of fannie mae and freddie mac 's participation in the u.s. mortgage market . several bills have been introduced in the u.s. senate and the u.s. house of representatives regarding the reform and or dissolution of the gses . gse reform has been a very slow process given the continued softness in the housing market and the subdued pace of overall economic growth . the federal housing finance agency ( `` fhfa `` ) has offered details on a single mbs security platform that would combine elements of fannie mae 's and freddie mac 's current mbs features , which has a goal of eliminating pricing discrepancies in the two entities ' securities and to increase liquidity to benefit the housing market . story_separator_special_tag we use both pay-fixed and receive-fixed interest rate swaps to manage our overall hedge position . as of december 31 , 2014 , the weighted average notional amount of interest rate derivatives that will be effective for future periods are shown in the following table : 39 replace_table_token_20_th ( 1 ) weighted average rate is based on the weighted average notional outstanding . please refer to note 6 of the notes to the consolidated financial statements contained with this annual report on form 10-k as well as `` loss on derivative instruments , net `` within `` results of operations `` contained within this item 7 for additional information related to our derivative assets and liabilities . repurchase agreements our repurchase agreement borrowings have decreased $ 567.6 million from december 31 , 2013 to december 31 , 2014 because we have slowed our reinvestment of principal payments and sale proceeds received on our mbs . in addition , the majority of our purchases during the past twelve months have been for non-agency investments for which we typically borrow a lower percentage of the asset 's value . the following tables present the leverage against the amortized cost and fair value of our non-agency cmbs and cmbs io investments by credit rating of the collateral pledged as of december 31 , 2014 and december 31 , 2013 : replace_table_token_21_th 40 please refer to note 5 of the notes to the consolidated financial statements contained within this annual report on form 10-k as well as `` interest expense , annualized cost of funds , and effective borrowings costs `` within `` results of operations `` and “ liquidity and capital resources ” contained within this item 7 for additional information relating to our repurchase agreements . results of operations in addition to our operating results presented in accordance with gaap , our results of operations discussed below contain certain non-gaap financial measures including core net operating income , adjusted net interest income , and effective borrowing cost and certain financial metrics derived from non-gaap information , such as adjusted net interest spread and effective borrowing rate . schedules reconciling these non-gaap financial measures to gaap financial measures are provided in item 6 within part ii of this annual report on from 10-k. as discussed in more detail below , management believes these non-gaap financial measures are useful because they provide investors greater transparency to the information we use in our financial and operational decision-making processes . management also believes the presentation of these measures , when analyzed in conjunction with the our gaap operating results , allows investors to more effectively evaluate and compare our performance to that of our peers . however , because such measures are incomplete measures of our financial performance and involve differences from results computed in accordance with gaap , these non-gaap measures should be considered as a supplement to , and not as a substitute for , our gaap results as reported in our consolidated statements of comprehensive income ( loss ) . in addition , because not all companies use identical calculations , our presentation of such non-gaap measures may not be comparable to other similarly-titled measures of other companies . interest income and asset yields interest income includes gross interest earned from the coupon rate on the securities , effects of premium amortization and discount accretion , and other interest income resulting from prepayment penalty income or other yield maintenance items . the following tables present information regarding interest income earned and effective yield on our mbs by collateral type for the periods indicated : replace_table_token_22_th 41 replace_table_token_23_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) effective yields are weighted by average balance of the investments and based on annualized amounts . recalculation of effective yields may not be possible using data provided because certain components of interest income use a 360-day year for the calculation while others use actual number of days in the year . the following table presents the estimated impact of changes in average balances and average yields on the increase ( decrease ) in interest income for the periods indicated : replace_table_token_24_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) amount includes other interest income amounts of $ 3.9 million , $ 3,2 million , and $ 1.6 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively , related to prepayment penalty income and other yield maintenance items . the majority of the other interest income amounts for the years ended december 31 , 2014 and december 31 , 2013 related to cmbs io and the majority of the other interest income amount for the year ended december 31 , 2012 related to cmbs . our interest income from mbs for the year ended december 31 , 2014 decreased compared to the year ended december 31 , 2013 due to a decrease in the average balance of our mbs portfolio and a decrease in the weighted average effective yield earned on our mbs portfolio . the balance of our investment portfolio declined throughout the year as the proceeds we received from sales of and principal repayments on our mbs were used to pay down our repurchase agreements borrowings rather than fully reinvesting into new assets . our purchases of new assets declined during 2014 as there were fewer opportunities to add investments with acceptable risk and return profiles . average yields on our mbs were lower as purchases across the portfolio 42 were made at lower yields , in particular cmbs io , and we experienced downward resets in interest rates on our variable-rate securities during 2014. our interest income

