Fair Values (Tables)

6 Months Ended

Jun. 30, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis

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


	June 30, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	743	$	—	$	743	$	—	$	4,086	$	—	$	4,086
Liabilities
Derivatives	$	—	$	6,928	$	—	$	6,928	$	—	$	210	$	—	$	210

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on 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):


	Six Months Ended June 30,
	2017		2016⁽¹⁾
January 1,	$	—	$	12,561
Proceeds from investment realizations		—		(2,406	)
Transfers out of level 3⁽²⁾		—		(20,745	)
Adjustments to fair value included in earnings
Gain on investments at fair value		—		10,590

June 30,	$	—	$	—

(1)

All assets measured at fair value on a recurring basis using Level 3 inputs were included as a component of other assets in the consolidated Balance Sheets.

(2)

During the second quarter of 2016, $20.7 million of collateralized debt obligations, or CDOs, were transferred out of Level 3 and into Level 1 as a result of a binding agreement to sell the underlying collateral assets of the CDO to an independent third-party as of June 30, 2016.

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):


	June 30, 2017						December 31, 2016
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	33,521	$	33,521	$	33,521	$	75,567	$	75,567	$	75,567
Restricted cash		34,278		34,278		34,278		—		—		—
Loans receivable, net		9,587,457		9,630,306		9,635,553		8,692,978		8,727,218		8,733,784
Financial liabilities
Secured debt agreements, net		5,806,037		5,823,766		5,823,766		5,716,354		5,731,626		5,731,626
Loan participations sold, net		367,671		369,042		369,042		348,077		349,633		349,633
Securitized debt obligations, net		474,123		474,620		476,572		—		—		—
Convertible notes, net		448,047		460,000		493,516		166,762		172,500		191,763