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Fair Values (Tables)

12 Months Ended

Dec. 31, 2013

The following table summarizes our assets that are recorded at fair value as of December 31, 2013 ($ in thousands):


	Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Measured on a recurring basis
Loans receivable, at fair value	$	40,665	$	—	$	—	$	40,665
Other assets, at fair value⁽¹⁾	$	15,740	$	—	$	1,944	$	13,796
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 December 31, 2013.

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


	Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (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 held-for-sale, net			Loans receivable, at fair value			Other assets at fair value⁽¹⁾			Investment in CT Legacy Asset
December 31, 2012	$	—		$	—		$	—		$	132,000
Consolidation of CT Legacy Partners		—			150,332			14,448			(132,000	)
Transfer from loans receivable, net		2,000			—			—			—
Transfer from loans receivable, at fair value		—			(6,813	)		6,813			—
Deferred interest		—			984			—			—
Proceeds from investments		(3,259	)		(110,654	)		(7,981	)		—
Adjustments to fair value included in earnings
Valuation allowance on loans held-for-sale		1,259			—			—			—
Gain on investments at fair value		—			6,816			516			—

December 31, 2013	$	—		$	40,665		$	13,796		$	—

(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 December 31, 2013 ($ in millions):


	Assumption Ranges for Significant Unobservable Inputs (Level 3)⁽¹⁾							Book Value Sensitivity to a 100 bp Discount Rate Increase
Collateral Type	Discount Rate		Recovery Percentage⁽²⁾			Book Value
Hotel		7%		100	%	$	15.0		(1.4	%)
Office		6% – 15%		100	%		25.7		(0.3	%)

						$	40.7

(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 balances as of December 31, 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 (i) cash and cash equivalents and (ii) convertible notes, are measured using significant unobservable inputs, or Level 3 inputs, as further described in Note 2. ($ in thousands):


	December 31, 2013						December 31, 2012
	Carrying Amount		Face Amount		Fair Value		Carrying Amount		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$	52,342	$	52,342	$	52,342	$	15,423	$	15,423	$	15,423
Restricted cash		10,096		10,096		10,096		14,246		14,246		14,246
Loans receivable, net		2,047,223		2,076,411		2,058,699		141,500		164,180		133,682

Financial liabilities
Secured notes		—		—		—		8,497		8,497		7,374
Repurchase obligations		1,109,353		1,109,353		1,109,353		—		—		—
Convertible notes, net		159,524		172,500		181,772		—		—		—
Securitized debt obligations		40,181		40,181		25,696		139,184		139,184		89,880
Participations sold		90,000		90,000		90,304		—		—		—

- 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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