14. FAIR VALUES

Assets and Liabilities Measured at Fair Value

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


	September 30, 2018								December 31, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Derivatives	$	—	$	2,719	$	—	$	2,719	$	—	$	1,214	$	—	$	1,214
Liabilities
Derivatives	$	—	$	3,676	$	—	$	3,676	$	—	$	4,911	$	—	$	4,911

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value.

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


	September 30, 2018						December 31, 2017
	Book		Face		Fair		Book		Face		Fair
	Value		Amount		Value		Value		Amount		Value
Financial assets
Cash and cash equivalents	$	86,987	$	86,987	$	86,987	$	69,654	$	69,654	$	69,654
Restricted cash		—		—		—		32,864		32,864		32,864
Loans receivable, net		12,176,516		12,260,103		12,261,013		10,056,732		10,108,226		10,112,331
Debt securities held-to-maturity⁽¹⁾		96,050		99,000		97,607		—		—		—
Financial liabilities
Secured debt agreements, net		6,841,759		6,862,256		6,862,256		5,273,855		5,290,536		5,290,536
Loan participations sold, net		81,044		81,170		81,170		80,415		80,706		80,706
Securitized debt obligations, net		1,284,362		1,292,120		1,297,032		1,282,412		1,292,120		1,292,589
Convertible notes, net		780,951		794,828		832,407		563,911		575,000		610,201



(1)		Included in other assets on our consolidated balance sheets.

Estimates of fair value for cash and cash equivalents, restricted cash, and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for debt securities held-to-maturity and securitized debt obligations are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.