Fair Values (Tables)

3 Months Ended

Mar. 31, 2014

Assets Measured at Fair Value on a Recurring Basis

The following table summarizes our assets measured at fair value on a recurring basis ($ in thousands):


	Level 1		Level 2		Level 3		Fair Value⁽¹⁾
March 31, 2014
Other assets, at fair value⁽²⁾	$	—	$	1,836	$	53,017	$	54,853
December 31, 2013
Other assets, at fair value⁽²⁾	$	—	$	1,944	$	54,461	$	56,405

(1)	CT CDO I had one impaired loan with a principal balance of $10.5 million measured on a non-recurring basis that had a 100% loan loss reserve as of both March 31, 2014 and December 31, 2013.

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

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):


	Other Assets,
	at Fair Value
December 31, 2013	$	54,461
Proceeds from investments		(113	)
Adjustments to fair value included in earnings
Loss on investments at fair value		(1,331	)

March 31, 2014	$	53,017

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 March 31, 2014 ($ in millions):


	Assumption Ranges for Significant						Book Value
	Unobservable Inputs (Level 3)⁽¹⁾						Sensitivity to a
		Recovery			Book		100 bp Discount
Collateral Type	Discount Rate	Percentage⁽²⁾			Value		Rate Increase
Hotel	7%		100	%	$	15.0		(0.6	%)
Office	6% - 15%		100	%		23.5		(0.4	%)

					$	38.5

(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 March 31, 2014.

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						Book Value
	Unobservable Inputs (Level 3)⁽¹⁾						Sensitivity to a
		Recovery			Book		100 bp Discount
Collateral Type	Discount Rate	Percentage⁽²⁾			Value		Rate Increase
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 Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):


	March 31, 2014						December 31, 2013
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	70,834	$	70,834	$	70,834	$	52,342	$	52,342	$	52,342
Restricted cash		10,677		10,677		10,677		10,096		10,096		10,096
Loans receivable, net		2,710,159		2,743,797		2,723,534		2,047,223		2,076,411		2,058,699

Financial liabilities
Repurchase obligations		1,529,788		1,529,788		1,529,788		1,109,353		1,109,353		1,109,353
Convertible notes, net		160,094		172,500		189,578		159,524		172,500		181,772
Securitized debt obligations		39,394		39,394		26,471		40,181		40,181		25,696
Participations sold		90,000		90,000		90,303		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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