6. Trading and Available-For-Sale Securities at Fair Value
|12 Months Ended|
Mar. 31, 2019
|Debt Securities, Available-for-sale [Abstract]|
|Trading and Available-For-Sale Securities at Fair Value||
As of March 31, 2019, and March 31, 2018, trading securities consisted of:
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:
There was a transfer between Level 1 and Level 3 valuation techniques during the year ended March 31, 2019, in the amount of $504. This transfer was related to corporate bonds of one issuer, and was made due to an absence of a market price from a stock exchange. As of March 31, 2019, fair value of these bonds was determined based on the discounted cash flows methodology.
The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2019 and March 31, 2018:
The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2019. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value.
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2019:
As of March 31, 2019 and 2018, approximately $60,000 and $105,000, respectively, worth of the Company’s proprietary trading account was invested in the securities of a single company. This represents approximately 36% and 49%, respectively, of the Company’s proprietary portfolio.