Fair Values (Tables)

9 Months Ended

Sep. 30, 2013

The following table summarizes our assets that are recorded at fair value as of September 30, 2013 ($ in thousands):


			Fair Value Measurements Using
			Quoted Prices		Other		Significant
			in Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Measured on a recurring basis
Loans receivable, at fair value	$	66,063	$	—	$	—	$	66,063
Other assets, at fair value ⁽¹⁾	$	19,272	$	—	$	1,925	$	17,347

Measured on a non-recurring basis
Impaired loans receivable ⁽²⁾	$	—	$	—	$	—	$	—

(1)	Other assets include securities, equity investments, and other receivables carried at fair value.

(2)	All impaired loans receivable have a 100% loan loss reserve and are held by CT CDO I as of September 30, 2013.

The following table summarizes our assets that are recorded at fair value as of December 31, 2012 ($ in thousands):


			Fair Value Measurements Using
			Quoted Prices		Other		Significant
			in Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Measured on a recurring basis
Investment in CT Legacy Asset	$	132,000	$	—	$	—	$	132,000

Measured on a non-recurring basis
Impaired loans receivable ⁽¹⁾	$	2,000	$	—	$	—	$	2,000

(1)	Impaired loans receivable have a 92% loan loss reserve and are held by consolidated securitization vehicles as of December 31, 2012.

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):


	Loans			Loans receivable,			Other assets,			Investment in
	held-for-sale, net			at fair value			at fair value ⁽¹⁾			CT Legacy Assets
December 31, 2012	$	—		$	—		$	—		$	132,000
Consolidation of CT Legacy Partners		—			150,332			15,761			(132,000	)
Transfer from loans receivable, net		2,000			—			—			—
Transfer from loans receivable, at fair value		—			(6,813	)		6,813			—
Deferred interest		—			325			—			—
Proceeds from investments		(3,200	)		(81,680	)		(3,867	)		—

Adjustments to fair value included in earnings
Valuation allowance on loans held-for-sale		1,200			—			—			—
Unrealized gain on investments at fair value		—			3,899			565			—

September 30, 2013	$	—		$	66,063		$	19,272		$	—

(1)	Other assets include securities, equity investments, and other receivables carried at fair value.

Schedule of Range of Key Assumptions for Each Type of Loans Receivable

The following table lists the range of key assumptions for each type of loans receivable as of September 30, 2013 ($ in millions):


	Assumption Ranges for Significant				Book Value
	Unobservable Inputs (Level 3) ⁽¹⁾				Sensitivity to a
		Recovery			100 bp Discount
Collateral Type	Discount Rate	Percentage ⁽²⁾	Book Value		Rate Increase
Hotel	8% - 9%	84% - 100%	$	26.5		(0.7	%)
Office	7% - 20%	78% - 100%		39.6		(1.5	%)

			$	66.1

(1)	Excludes loans for which there is no expectation of future cash flows.

(2)	Represents the proportion of the principal expected to be collected relative to the loan balance as of September 30, 2013.

Schedule of Details of Carrying Amount, Face Amount, and Approximate Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and approximate fair value of the financial instruments described in Note 2. All fair value estimates, except for cash and cash equivalents, are measured using significant unobservable inputs, or Level 3 inputs, as further described above. ($ in thousands):


	September 30, 2013						December 31, 2012
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	10,283	$	10,283	$	10,283	$	15,423	$	15,423	$	15,423
Restricted cash		76,396		76,396		76,396		14,246		14,246		14,246
Loans receivable, net		1,362,891		1,387,067		1,360,842		141,500		164,180		133,682

Financial liabilities
Secured notes		9,030		9,030		8,068		8,497		8,497		7,374
Repurchase obligations		643,040		643,040		643,040		—		—		—
Securitized debt obligations		74,203		74,203		57,138		139,184		139,184		89,880

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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