15. 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):


	December 31, 2018								December 31, 2017
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	9,916	$	—	$	9,916	$	—	$	1,214	$	—	$	1,214
Liabilities
Derivatives	$	—	$	2,925	$	—	$	2,925	$	—	$	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):


	December 31, 2018						December 31, 2017
	Book Value		Face Amount		Fair Value		Book Value		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$	105,662	$	105,662	$	105,662	$	69,654	$	69,654	$	69,654
Restricted cash		—		—		—		32,864		32,864		32,864
Loans receivable, net		14,191,200		14,293,970		14,294,836		10,056,732		10,108,226		10,112,331
Debt securities held-to-maturity⁽¹⁾		96,167		99,000		96,600		—		—		—

Financial liabilities
Secured debt agreements, net		8,974,756		8,996,481		8,996,481		5,273,855		5,290,536		5,290,536
Loan participations sold, net		94,418		94,528		94,528		80,415		80,706		80,706
Securitized debt obligations, net		1,285,471		1,292,120		1,283,086		1,282,412		1,292,120		1,292,589
Convertible notes, net		609,911		622,500		605,348		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.