FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Carrying Amount and Fair Value of Financial Instruments

The following table summarizes the carrying amount and the fair value of our financial instruments as of June 30, 2016:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Total investment in mortgages and loans, net	$	1,477,106	$	1,437,291
Cash and cash equivalents		66,885		66,885
Restricted cash		159,429		159,429
Derivative assets		53		53
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		843		935
4.0% convertible senior notes		119,474		116,452
7.625% senior notes		55,450		50,435
7.125% senior notes		68,899		69,486
Senior secured notes		60,645		66,851
Junior subordinated notes, at fair value		10,789		10,789
Junior subordinated notes, at amortized cost		24,890		11,318
CMBS facilities		138,618		138,977
Non-recourse indebtedness:
Secured credit facilities		243,604		247,335
Term loans		39,559		40,000
CDO notes payable, at amortized cost		765,299		633,692
CMBS securitizations		586,977		585,918
Loans payable on real estate		865,691		910,275
Other indebtedness		24,521		24,796
Derivative liabilities		3,972		3,972
Warrants and investor SARs		29,300		29,300

The following table summarizes the carrying amount and the fair value of our financial instruments as of December 31, 2015:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Total investment in mortgages and loans, net	$	1,606,486	$	1,537,086
Cash and cash equivalents		125,886		125,886
Restricted cash		213,012		213,012
Derivative assets		206		206
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		28,868		27,795
4.0% convertible senior notes		133,039		104,184
7.625% senior notes		57,952		46,560
7.125% senior notes		69,749		62,471
Senior secured notes		63,045		66,725
Junior subordinated notes, at fair value		10,504		10,504
Junior subordinated notes, at amortized cost		24,884		11,221
CMBS facilities		96,723		97,067
Non-recourse indebtedness:
Secured credit facilities		267,155		271,500
Term loans		118,418		120,000
CDO notes payable, at amortized cost		937,569		801,289
CMBS securitizations		708,510		709,001
Loans payable on real estate		811,666		834,816
Derivative liabilities		4,727		4,727
Warrants and investor SARs		26,200		26,200

Information of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of June 30, 2016, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of June 30, 2016
Derivative assets	$	—	$	53	$	—	$	53
Total assets	$	—	$	53	$	—	$	53

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of June 30, 2016
Junior subordinated notes, at fair value	$	—	$	—	$	10,789	$	10,789
Derivative liabilities		—		3,972		—		3,972
Warrants and investor SARs		—		—		29,300		29,300
Total liabilities	$	—	$	3,972	$	40,089	$	44,061

(a) During the six months ended June 30, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Derivative assets	$	—	$	206	$	—	$	206
Total assets	$	—	$	206	$	—	$	206

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Junior subordinated notes, at fair value	$	—	$	—	$	10,504	$	10,504
Derivative liabilities		—		4,727		—		4,727
Warrants and investor SARs		—		—		26,200		26,200
Total liabilities	$	—	$	4,727	$	36,704	$	41,431

(a) During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

Rollforward of Level 3 Liabilities

Liabilities	Warrants and investor SARS		Junior Subordinated Notes, at Fair Value		Total Level 3 Liabilities
Balance, as of December 31, 2015	$	26,200	$	10,504	$	36,704
Change in fair value of financial instruments		3,100		285		3,385
Purchases		—		—		—
Principal Repayments		—		—		—
Balance, as of June 30, 2016	$	29,300	$	10,789	$	40,089

Fair Value Hierarchy for Financial Instruments Not Fair Valued but For Which Fair Value Is Required To Be Disclosed

The following tables summarize the valuation technique and the level of the fair value hierarchy for financial instruments that are not fair valued in the accompanying consolidated balance sheets but for which fair value is required to be disclosed. The fair value of cash and cash equivalents, restricted cash, secured credit facilities, CMBS facilities, commercial mortgage facilities and other indebtedness approximates cost due to the nature of these instruments and are not included in the tables below.

	Carrying Amount as of June 30, 2016		Estimated Fair Value as of June 30, 2016		Valuation Technique	Level in Fair Value Hierarchy
Total investment in mortgages and loans, net	$	1,477,106	$	1,437,291	Discountedcash flows	Three
7.0% convertible senior notes		843		935	Trading price	One
4.0% convertible senior notes		119,474		116,452	Trading price	One
7.625% senior notes		55,450		50,435	Trading price	One
7.125% senior notes		68,899		69,486	Trading price	One
Senior secured notes		60,645		66,851	Discounted cash flows	Three
Junior subordinated notes, at amortized cost		24,890		11,318	Discounted cash flows	Three
CDO notes payable, at amortized cost		765,299		633,692	Discounted cash flows	Three
CMBS securitizations		586,977		585,918	Discounted cash flows	Three
Loans payable on real estate		865,691		910,275	Discounted cash flows	Three

	Carrying Amount as of December 31, 2015		Estimated Fair Value as of December 31, 2015		Valuation Technique	Level in Fair Value Hierarchy
Total investment in mortgages and loans, net	$	1,606,486	$	1,537,086	Discountedcash flows	Three
7.0% convertible senior notes		28,868		27,795	Trading price	One
4.0% convertible senior notes		133,039		104,184	Trading price	One
7.625% senior notes		57,952		46,560	Trading price	One
7.125% senior notes		69,749		62,471	Trading price	One
Senior secured notes		63,045		66,725	Discounted cash flows	Three
Junior subordinated notes, at amortized cost		24,884		11,221	Discounted cash flows	Three
CDO notes payable, at amortized cost		937,569		801,289	Discounted cash flows	Three
CMBS securitization		708,510		709,001	Discounted cash flows	Three
Loans payable on real estate		811,666		834,816	Discounted cash flows	Three

Summary of Realized and Unrealized Gains and Losses on Assets and Liabilities

The following table summarizes realized and unrealized gains and losses on assets and liabilities for which we elected the fair value option of FASB ASC Topic 825, “Financial Instruments” and derivatives as reported in change in fair value of financial instruments in the accompanying consolidated statements of operations:

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
Description	2016			2015		2016			2015
Change in fair value of trading securities and    security-related receivables	$	—		$	—	$	—		$	(173	)
Change in fair value of junior subordinated notes		(1,004	)		316		(285	)		236
Change in fair value of derivatives		(388	)		1,627		(2,295	)		(420	)
Change in fair value of warrants and investors SARs		(200	)		6,413		(3,100	)		13,203
Change in fair value of financial instruments	$	(1,592	)	$	8,356	$	(5,680	)	$	12,846