Quarterly report pursuant to Section 13 or 15(d)

TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE

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TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE
 3 Months Ended
Dec. 31, 2021
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract]  
Trading and Available-for-Sale Securities at Fair Value TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE
As of December 31, 2021, and March 31, 2021, trading and available-for-sale securities consisted of:
December 31, 2021 March 31, 2021
Corporate debt $ 624,247  $ 334,763 
Non-US sovereign debt 451,437  333,619 
Corporate equity 161,550  47,340 
Exchange traded notes 104,462  9,638 
US sovereign debt 6,960  10,828 
Total trading securities $ 1,348,656  $ 736,188 
Equity securities $ 1  $ 1 
Total available-for-sale securities, at fair value $ 1  $ 1 

As of December 31, 2021, the Company held debt securities of two issuers which individually exceeded 10% of the Company’s total trading securities - the Kazakhstan Sustainability Fund JSC (BBB credit rating) in the amount of $297,214 and the Ministry of Finance of the Republic of Kazakhstan (BBB- credit rating) in the amount of $374,982. The Company
also held equities of Public Joint Stock Company “St. Petersburg Exchange” in the amount of $140,257. As of March 31, 2021, the Company held debt securities of two issuers which individually exceeded 10% of the Company’s total trading securities - the Ministry of Finance of the Republic of Kazakhstan and the Kazakhstan Sustainability Fund JSC in the amounts of $293,451 and $193,677, respectively.
The Company recognized no other-than-temporary impairment in accumulated other comprehensive income.
The fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required.
Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The valuation hierarchy contains three levels:
•Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets.
•Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured.
•Level 3 - Valuation inputs are unobservable and significant to the fair value measurement.
The following tables present securities assets in the Condensed Consolidated Financial Statements or disclosed in the Notes to the Condensed Consolidated Financial Statements at fair value on a recurring basis as of December 31, 2021, and March 31, 2021:
Weighted Average
Interest Rate 		Total
Fair Value Measurements at
December 31, 2021 using
Quoted Prices in
Active Markets
for Identical Assets		 Significant
Other Observable
Inputs		 Significant Unobservable
Units
(Level 1) (Level 2) (Level 3)
Corporate debt 8.80  % $ 624,247  $ 623,463  $ 415  $ 369 
Non-U.S. sovereign debt 9.35  % 451,437  448,895  1,593  949 
Corporate equity —  161,550  155,694  5,409  447 
Exchange traded notes —  104,462  104,462  —  — 
U.S. sovereign debt 2  % 6,960  6,960  —  — 
Total trading securities $ 1,348,656  $ 1,339,474  $ 7,417  $ 1,765 
Equity securities —  $ 1  $ —  $ —  $ 1 
Total available-for-sale securities, at fair value $ 1  $ —  $ —  $ 1 
Weighted Average
Interest Rate
Total
Fair Value Measurements at
March 31, 2021 using
Quoted Prices in
Active Markets
for Identical Assets		 Significant
Other Observable Inputs		 Significant Unobservable
Units
(Level 1) (Level 2) (Level 3)
       
Corporate debt 9.22  % $ 334,763  $ 334,403  $ —  $ 360 
Non-U.S. sovereign debt 8.06  % 333,619  333,619  —  — 
Corporate equity —  47,340  28,630  1  18,709 
U.S. sovereign debt 1.68  % 10,828  10,828  —  — 
Exchange traded notes —  9,638  9,638  —  — 
Total trading securities $ 736,188  $ 717,118  $ 1  $ 19,069 
Equity securities —  $ 1  $ —  $ —  $ 1 
Total available-for-sale securities, at fair value $ 1  $ —  $ —  $ 1 
The table below presents the valuation techniques and significant level 3 inputs used in the valuation as of December 31, 2021, and March 31, 2021. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value.
Type Valuation Technique FV as of December 31, 2021 FV as of March 31, 2021 Significant Unobservable Inputs %
Non-US sovereign debt DCF $ 949  —  Discount rate 13.8%
Estimated number of years 1 year
Corporate equity DCF $ 447  $ 301  Discount rate 18.5%
Estimated number of years 9 years
Corporate debt DCF $ 369  $ 360  Discount rate 16.5%
Estimated number of years 9 years
Corporate equity DCF —  $ 18,408  Discount rate 10.6%
Estimated number of years 9 years
Total $ 1,765  $ 19,069 
As of December 31, 2021, shares of SPBX held by the Company were transferred from level 3 to level 1, due to active trades on the market. During the nine months ended December 31, 2021, market trades of SPBX shares were executed in the market, and market data for these shares became available.
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended December 31, 2021, and the year ended March 31, 2021:
Trading
securities		 Available-for-sale securities
Balance as of March 31, 2021
 $ 19,069  $ 1 
Reclassification to level 1 (18,408) — 
Redemption of securities that use Level 3 inputs (1,030) — 
Purchase of investments that use Level 3 inputs 1,964  — 
Revaluation of investments that use Level 3 inputs 170  — 
Balance as of December 31, 2021
 1,765  1 
Balance as of March 31, 2020
 $ 11,259  $ 1 
Sale of investments that use Level 3 inputs (2) — 
Purchase of investments that use Level 3 inputs 834  — 
Revaluation of investments that use Level 3 inputs 6,978  — 
Balance as of March 31, 2021
 $ 19,069  $ 1 
The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of December 31, 2021, and March 31, 2021:
December 31, 2021
Assets measured at amortized
cost		 Unrealized loss accumulated in
other comprehensive
income/(loss)		 Assets
measured at
fair value
Equity securities $ 1  $ —  $ 1 
Balance as of December 31, 2021
 $ 1  $ —  $ 1 
March 31, 2021
Assets measured
at amortized cost		 Unrealized loss accumulated in
other comprehensive
income/(loss)		 Assets
measured at
fair value
Equity securities $ 1  $ —  $ 1 
Balance as of March 31, 2021
 $ 1  $ —  $ 1