VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2014

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets that relate to the Company's variable interests in identified nonconsolidated VIEs and the Company's maximum exposure to loss associated with these VIEs in which it holds variable interests at March 31, 2014 (in thousands):

	Receivables from Managed Entities and Related Parties, Net (1)		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
RRE Opportunity REIT I	$	—	$	2,549	$	2,549
RRE Opportunity REIT II	1,649		200		1,849
Ischus entities	210		—		210
Trapeza entities	—		1,009		1,009
RRE Global Opportunity Fund	—		675		675
	$	1,859	$	4,433	$	6,292

(1) Exclusive of expense reimbursements due to the Company.

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information are as follows (in thousands, per share data):

	Three Months Ended
	March 31,
	2014			2013
Cash (paid) received:
Interest	$	(409	)	$	(441	)
Income tax payments	(176		)	(863		)
Refund of income taxes	47			13
Dividends declared per common share	$	0.05		$	0.03
Non-cash activities:
Repurchases of common stock from employees in exchange for the payment of income taxes	$	207		$	28
Issuance of treasury stock for the Company's investment savings 401(k) plan	178			109

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

Unrealized losses in available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):

	Less than 12 Months							More than 12 Months
	Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses		Number of Securities
March 31, 2014
CLO securities	$	2,292	$	(147	)	3		$	—	$	—	—
Equity securities	771		(6		)	2		—		—		—
Total	$	3,063	$	(153	)	$	5	$	—	$	—	—
December 31, 2013
CLO securities	$	2,312	$	(196	)	3		$	—	$	—	—
Equity securities	92		(8		)	1		—		—		—
Total	$	2,404	$	(204	)	4		$	—	$	—	—

Schedule of Equity Method Investments

 The following table details the Company’s investments in these vehicles, including the range of ownership interests owned (in thousands, except percentages):

	Range of Combined Ownership Interests	March 31,		December 31,
		2014		2013
Real estate investment entities	1% – 12%	$	7,712	$	8,271
Financial fund management partnerships	3% − 50%	4,888		5,294
Trapeza entities	33% − 50%	1,009		777
Investments in unconsolidated entities		$	13,609	$	14,342

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands):

	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended March 31, 2014:
Balance, beginning of year	$	36,229		$	—		$	14		$	36,243
Provision for credit losses	1,213			(1		)	(4		)	1,208
Charge-offs	(1		)	—			—			(1		)
Recoveries	—			1			—			1
Balance, end of year	$	37,441		$	—		$	10		$	37,451
Ending balance, individually evaluated for impairment	$	37,441		$	—		$	—		$	37,441
Ending balance, collectively evaluated for impairment	—			—			10			10
Balance, end of year	$	37,441		$	—		$	10		$	37,451
Three Months Ended March 31, 2013:
Balance, beginning of year	$	32,560		$	—		$	68		$	32,628
Provision for credit losses	330			(3		)	11			338
Charge-offs	—			—			(25		)	(25		)
Recoveries	16			3			—			19
Balance, end of year	$	32,906		$	—		$	54		$	32,960
Ending balance, individually evaluated for impairment	$	32,906		$	—		$	—		$	32,906
Ending balance, collectively evaluated for impairment	—			—			54			54
Balance, end of year	$	32,906		$	—		$	54		$	32,960

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

The following table is the aging of the Company’s past due financing receivables (presented gross of allowance for credit losses) as of March 31, 2014 (in thousands):

	30-89 Days Past Due		Greater than 90 Days		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from    managed entities and    related parties: (1)
Commercial finance     investment entities (2)	$	—	$	—	$	45,239	$	45,239	$	994	$	46,233
Real estate investment entities	1,298		560		17,221		19,079		5,413		24,492
Financial fund management entities	25		2		41		68		727		795
Other	17		68		—		85		342		427
	1,340		630		62,501		64,471		7,476		71,947
Rent receivables - real estate	7		9		1		17		58		75
Total financing receivables	$	1,347	$	639	$	62,502	$	64,488	$	7,534	$	72,022

(1) Receivables are presented gross of an allowance for credit losses of $37.4 million related to the Company’s commercial finance investment entities.  The remaining receivables from managed entities and related parties have no related allowance for credit losses.

(2) Pursuant to a guarantee agreement, the Company made a payment to the lender of one of its commercial finance investment partnerships. In making the payment, the Company assumed the rights of the lender, with the resulting note being collateralized by the portfolio of leases and loans held by the partnership (see Note 17).

The following table is the aging of the Company’s past due financing receivables (presented gross of allowance for credit losses) as of December 31, 2013 (in thousands):

	30-89 Days Past Due		Greater than 90 Days		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from    managed entities and    related parties: (1)
Commercial finance     investment entities	$	—	$	—	$	44,355	$	44,355	$	48	$	44,403
Real estate investment entities	793		1,229		16,323		18,345		3,142		21,487
Financial fund management entities	35		3		29		67		1,071		1,138
Other	33		21		—		54		70		124
	861		1,253		60,707		62,821		4,331		67,152
Rent receivables - real estate	14		4		10		28		63		91
Total financing receivables	$	875	$	1,257	$	60,717	$	62,849	$	4,394	$	67,243

(1) Receivables are presented gross of an allowance for credit losses of $36.2 million related to the Company’s commercial finance investment entities.  The remaining receivables from managed entities and related parties have no related allowance for credit losses.

Information about Company's Impaired Financing Receivables

The following table discloses information about the Company’s impaired financing receivables (in thousands):

	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of March 31, 2014
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	2,797	$	40,238	$	37,441	$	39,161
Rent receivables – real estate	—		10		10		21
As of December 31, 2013
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	2,690	$	38,919	$	36,229	$	38,649
Rent receivables – real estate	—		14		14		32

Debt and Credit Facilities

The credit facilities and other debt of the Company and related borrowings outstanding are as follows (in thousands): 

	As of March 31, 2014				December 31, 2013
	Maximum Amount of Facility		Borrowings Outstanding		Borrowings Outstanding
Credit facilities:
TD Bank – secured revolving credit facility (1)	$	6,997	$	—	$	—
Republic Bank – secured revolving credit facility	3,500		—		—
			—		—
Other debt:
Senior Notes			10,000		10,000
Mortgage debt			10,236		10,287
Other debt			265		332
Total borrowings outstanding			$	20,501	$	20,619

(1) The amount of the facility as shown has been reduced for outstanding letters of credit of $503,000 at March 31, 2014.

Company's Asset Recorded at Fair Value on Recurring Basis

As of March 31, 2014, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands): 

	Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	453	$	675	$	7,972	$	9,100

As of December 31, 2013, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands): 

	Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	432	$	—	$	7,407	$	7,839

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during three months ended March 31, 2014 (in thousands):

	Investment Securities
Balance, beginning of year	$	7,407
Purchases	2,773
Income accreted	243
Payments and distributions received	(413		)
Sales	(2,185		)
Gains on sales of trading securities	188
Unrealized holding losses on trading securities	(71		)
Change in unrealized losses included in accumulated other comprehensive loss	30
Balance, end of period	$	7,972

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during year ended December 31, 2013 (in thousands):

	Investment Securities
Balance, beginning of year	$	10,367
Purchases	11,630
Income accreted	899
Payment and distributions received	(14,058		)
Sales	(6,286		)
Impairment recognized in earnings	(214		)
Gains on sales of trading securities	6,294
Unrealized holding losses on trading securities	(1,055		)
Change in unrealized losses included in accumulated other comprehensive loss	(170		)
Balance, end of year	$	7,407

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The Company recognized the following changes in carrying value of the assets and liabilities measured at fair value on a non-recurring basis, as follows (in thousands):

	Level 1		Level 2		Level 3		Total
Three Months Ended March 31, 2014
Assets:
Loans and receivables from managed entities – commercial finance and real estate	$	—	$	—	$	3,166	$	3,166
Liability:
Apidos contractual commitment	$	—	$	—	$	1,119	$	1,119
Year Ended December 31, 2013
Assets:
Loans and receivables from managed entities – commercial finance and real estate	$	—	$	—	$	4,528	$	4,528
Liability:
Apidos contractual commitment	$	—	$	—	$	995	$	995

Fair Value of Financial Instruments

The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands):

	March 31, 2014				December 31, 2013
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Loans and receivables from managed entities	$	34,506	$	34,506	$	30,923	$	30,923
Borrowings:
Real estate debt	$	10,236	$	10,957	$	10,287	$	10,702
Senior Notes	10,000		13,015		10,000		12,619
Other debt	265		265		332		332
	$	20,501	$	24,237	$	20,619	$	23,653

RSO [Member]

Variable Interest Entity [Line Items]

Condensed Financial Statements

The following reflects the assets and liabilities and operations of RSO which was consolidated by the Company:

RSO Balance Sheets Detail (in thousands):
	March 31, 2014			December 31, 2013
ASSETS (1)
Cash and cash equivalents	$	166,686		$	262,270
Restricted cash	115,952			63,309
Subtotal- Cash and cash equivalents	282,638			325,579
Investment securities, trading	9,987			11,558
Investment securities available-for-sale, pledged as collateral, at fair value	159,051			162,608
Investment securities available-for-sale, at fair value	74,500			52,598
Subtotal - Investments, at fair value	243,538			226,764
Loans, pledged as collateral and net of allowances of $6.6 million and $13.8 million	1,596,731			1,369,526
Loans receivable–related party	6,498			6,966
Loans held for sale	15,389			21,916
Subtotal - Loans, before eliminations	1,618,618			1,398,408
Eliminations	(558		)	(950		)
Subtotal - Loans	1,618,060			1,397,458
Property available-for-sale	35,256			25,346
Investment in real estate	19,971			29,778
Investments in unconsolidated entities	62,053			69,069
Subtotal, Investments in real estate and unconsolidated entities	117,280			124,193
Line items included in "other assets":
Linked transactions, net at fair value	34,829			30,066
Derivatives, at fair value	556			—
Interest receivable	10,503			8,965
Deferred tax asset	5,048			5,212
Principal paydown receivable	1			6,821
Intangible assets	11,283			11,822
Prepaid expenses	4,155			2,871
Other assets	13,459			10,726
Subtotal - Other assets, before eliminations	79,834			76,483
Eliminations	(15		)	(16		)
Subtotal - Other assets	79,819			76,467
Total assets (excluding eliminations)	$	2,341,908		$	2,151,427
Total assets (including eliminations)	$	2,341,335		$	2,150,461
LIABILITIES (2)
Borrowings	$	1,502,089		$	1,319,810
Eliminations	177			205
Subtotal Borrowings	1,502,266			1,320,015
Distribution payable	27,601			27,023
Accrued interest expense	3,848			1,693
Derivatives, at fair value	10,242			10,586
Accrued tax liability	387			1,629
Deferred tax liability	4,036			4,112
Accounts payable and other liabilities	13,511			12,650
Subtotal - Other liabilities, before eliminations	59,625			57,693
Eliminations	(2,691		)	(2,446		)
Subtotal - Other liabilities	56,934			55,247
Total liabilities (before eliminations)	$	1,561,714		$	1,377,503
Total liabilities (after eliminations)	$	1,559,200		$	1,375,262

RSO Balance Sheets Detail (in thousands):
	March 31, 2014		December 31, 2013
(1) Assets of consolidated RSO's VIEs included in the total assets above:
Restricted cash	$	113,362	$	61,372
Investments securities available-for-sale, pledged as collateral, at fair value	116,429		105,846
Loans held for sale	272		2,376
Loans, pledged as collateral and net of allowances of $5.1 million and $8.8 million	1,305,377		1,219,569
Interest receivable	6,626		5,627
Prepaid expenses	163		247
Principal receivable	1		6,821
Total assets of consolidated VIEs	$	1,542,230	$	1,401,858
(2) Liabilities of consolidated RSO's VIEs included in the total liabilities above:
Borrowings	$	1,183,468	$	1,070,339
Accrued interest expense	1,356		918
Derivatives, at fair value	9,841		10,191
Accounts payable and other liabilities	4,150		1,604
Total liabilities of consolidated VIEs	$	1,198,815	$	1,083,052

The following table presents detail of noncontrolling interests attributable to RSO:

	March 31, 2014			December 31, 2013
Total stockholders' equity per RSO balance sheet	$	780,194		$	773,924
Eliminations	(30,202		)	(30,560		)
Noncontrolling interests attributable to RSO	$	749,992		$	743,364

RSO Income Statement Detail (in thousands):
	Three Months Ended
	March 31,
	2014			2013
REVENUES
Interest income:
Loans	$	20,229		$	27,812
Securities	4,004			3,642
Interest income − other	2,852			1,866
Total interest income	27,085			33,320
Interest expense	9,637			11,165
Net interest income	17,448			22,155
Rental income	5,152			6,174
Dividend income	136			16
Equity in net earnings (losses) of unconsolidated subsidiaries	2,014			(425		)
Fee income	2,756			1,410
Net realized gain on sales of investment securities available-for-sale and loans	3,680			391
Net realized and unrealized (loss) gain on investment securities, trading	(1,560		)	1,116
Unrealized gain (loss) and net interest income on linked transactions, net	2,305			(259		)
Revenues from consolidated VIE - RSO	31,931			30,578
OPERATING EXPENSES
Management fees − related party	3,080			2,978
Equity compensation − related party	1,667			3,591
Rental operating expense	3,396			3,937
General and administrative	8,105			3,481
Depreciation and amortization	836			1,138
Income tax expense	16			1,762
Net impairment losses recognized in earnings	—			21
(Benefit) provision for loan losses	(3,960		)	1,042
Total operating expenses	13,140			17,950
Reclassification of income tax expense	(16		)	(1,762		)
Expenses of consolidated VIE - RSO	13,124			16,188
Adjusted operating income	18,807			14,390
OTHER REVENUE (EXPENSE)
Other expenses	(1,262		)	—
Loss on the extinguishment of debt	(69		)	—
Other expense, net, from consolidated VIE - RSO	(1,331		)	—
Income from continuing operations	17,476			14,390
Income tax provision - RSO	16			1,762
NET INCOME	17,460			12,628
Net income allocated to preferred shares	(2,400		)	(1,311		)
Net income allocated to noncontrolling interests	56			209
NET INCOME ALLOCABLE TO RSO COMMON SHAREHOLDERS	$	15,116		$	11,526

RSO Cash Flow Detail (in thousands)	Three Months Ended
	March 31,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	17,460		$	12,628
Items included in "Change in cash attributable to consolidated VIE - RSO":
Provision for loan losses	(3,960		)	1,042
Depreciation of investments in real estate and other	392			666
Amortization of intangible assets	444			532
Amortization of term facilities	534			221
Accretion of net discounts on loans held for investment	(574		)	(4,079		)
Accretion of net discounts on securities available-for-sale	(769		)	(731		)
Amortization of discounts on convertible notes	422			—
Amortization of discount on notes of securitizations	12			876
Amortization of debt issuance costs on notes of securitizations	796			1,176
Amortization of stock-based compensation	1,667			3,591
Amortization of terminated derivative instruments	70			55
Accretion of interest-only available-for-sales securities	(137		)	(247		)
Deferred income tax benefits	(89		)	(115		)
Mortgage loans held for sale, net	(877		)	—
Purchase of securities, trading	—			(10,044		)
Principal payments on securities, trading	42			21
Proceeds from sales of securities, trading	—			3,089
Net realized and unrealized loss (gain) on investment securities, trading	1,560			(1,116		)
Net realized gains on sales of investment securities available-for-sale and loans	(3,680		)	(391		)
Loss on early extinguishment of debt	69			—
Net impairment losses recognized in earnings	—			12
Linked Transactions fair value adjustments	(1,763		)	592
Equity in net (earnings) losses of unconsolidated subsidiaries	(2,014		)	425
Change in operating assets and liabilities, net of acquisitions	9,563			15,096
Subtotal - consolidated VIE - RSO operating activity	1,708			10,671
Change in consolidated VIE - RSO cash for the period	95,584			17,617
Subtotal - Change in cash attributable to consolidated VIE - RSO before eliminations	97,292			28,288
Elimination of intercompany activity	(28		)	(654		)
Subtotal - Change in cash attributable to consolidated VIE - RSO	97,264			27,634
Non-cash incentive compensation to RAI	—			(1		)
Elimination of intercompany activity	—			1
Non-cash incentive compensation to RAI, after eliminations	—			—
Net cash provided by operating activities (excluding eliminations)	19,168			23,298

	Three Months Ended
	March 31,
	2014		2013
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans	(169,380	)	(146,699	)
Purchase of securities available-for-sale	(48,321	)	(63,292	)
Subtotal - Purchase of loans and securities by consolidated VIE - RSO, before eliminations	(217,701	)	(209,991	)
Principal payments received on loans	90,948		209,107
Proceeds from sale of loans	15,974		58,148
Principal payments on securities available-for-sale	17,325		7,944
Proceeds from sale of securities available-for-sale	12,314		—
Subtotal - principal payments and proceeds from sales received by consolidated VIE - RSO, before eliminations	136,561		275,199
Increase in restricted cash	(12,849	)	(19,241	)
Items included in "Other -VIE, investing activity":
Proceeds from (investment in) unconsolidated entity	5,650		(4,431	)
Acquisition of Moselle CLO S.A.	(30,433	)	—
Distributions from investments in real estate	—		253
Improvements in investments in real estate	—		(321	)
Investment in loans - related parties	(285	)	—
Principal payments received on loans – related parties	753		464
Purchase of furniture and fixtures	(38	)	—
Acquisition of property and equipment	(269	)	—
Subtotal - Other consolidated VIE - investing activity, before eliminations	(24,622	)	(4,035	)
Eliminations	(391	)	—
Subtotal - Other consolidated VIE - investing activity	(25,013	)	(4,035	)
Net cash (used in) provided by investing activities (excluding eliminations)	(118,611	)	41,932

	Three Months Ended
	March 31,
	2014			2013
CASH FLOWS FROM FINANCING ACTIVITIES:
Items included in "Net borrowings (repayments) of debt by consolidated VIE - RSO"
Proceeds from borrowings:
Repurchase agreements	75,589			37,145
Warehouse agreements	34,007			—
Payments on borrowings:
Collateralized debt obligations	(59,668		)	(141,341		)
Warehouse agreements	(33,719		)	—
Subtotal - net (repayments) borrowings of debt by consolidated VIE - RSO	16,209			(104,196		)
Distributions paid on common stock	(25,536		)	(20,978		)
Elimination of dividends paid to RAI	572			556
Distribution paid on common stock, after elimination	(24,964		)	(20,422		)
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $19)	245			17,995
Proceeds from issuance of 8.5% Series A redeemable preferred shares (net of offering costs of $0 and $0)	4,440			—
Proceeds from issuance of 8.25% Series B redeemable preferred shares (net of offering costs of $565 and $707)	10,975			26,867
Subtotal - net proceeds from issuance of stock by consolidated VIE	15,660			44,862
Payment of debt issuance costs	(8		)	(140		)
Payment of equity to third party sub-note holders	(307		)	(1,461		)
Distributions paid on preferred stock	(2,159		)	(934		)
Subtotal - Other consolidated VIE - RSO financing activity, before elimination	(2,474		)	(2,535		)
Elimination	—			—
Subtotal - Other consolidated VIE - RSO financing activity after elimination	(2,474		)	$	(2,535	)
Net cash provided by (used in) financing activities (excluding eliminations)	$	3,859		$	(82,847	)
NET INCREASE IN CASH AND CASH EQUIVALENTS	(95,584		)	(17,617		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	262,270			85,278
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	166,686		$	67,661
SUPPLEMENTAL DISCLOSURE:
Interest expense paid in cash	$	8,576		$	10,188
Income taxes paid in cash	$	1,774		$	7,635

Property and Equipment, Net

RSO depreciates real property using the straight-line method over the estimated useful lives of the assets as follows:

Category	Term
Building	25 - 40 years
Site improvements	Lesser of the remaining life of building or useful lives

Schedule of Variable Interest Entities

The following table shows the classification, carrying value and maximum exposure to loss with respect to RSO’s unconsolidated VIEs as of March 31, 2014 (in thousands):

	Unconsolidated Variable Interest Entities
	LEAF		Unsecured Junior Subordinated Debentures			Resource Capital Asset Management CDOs		Total		Maximum Exposure to Loss
Investment in unconsolidated entities	$	40,421	$	1,548		$	—	$	41,969	41,969
Intangible assets	—		—			10,790		10,790		10,790
Total assets	40,421		1,548			10,790		52,759
Borrowings	—		51,054			—		51,054		N/A
Total liabilities	—		51,054			—		51,054		N/A
Net asset (liability)	$	40,421	$	(49,506	)	10,790		$	1,705	N/A

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of March 31, 2014 (in thousands):

	Apidos I			Apidos III		Apidos Cinco		Apidos VIII		Whitney CLO I		RREF 2006		RREF 2007		RCC CRE Notes 2013		Moselle		Total
ASSETS
Restricted cash (1)	$	11,951		$	7,217	$	48,362	$	134	$	160	$	18	$	250	$	4,805	$	40,465	$	113,362
Investment securities available-for-sale, pledged    as collateral, at fair value	7,250			3,922		13,940		—		—		9,996		67,015		—		14,306		116,429
Loans, pledged as collateral	70,988			112,953		284,373		—		—		159,797		228,686		298,575		150,005		1,305,377
Loans held for sale	97			175		—		—		—		—		—		—		—		272
Interest receivable	(193		)	513		1,044		—		6		1,825		2,111		1,320		—		6,626
Prepaid assets	20			20		36		—		—		50		37		—		—		163
Principal paydown receivable	—			—		1		—		—		—		—		—		—		1
Total assets (2)	$	90,113		$	124,800	$	347,756	$	134	$	166	$	171,686	$	298,099	$	304,700	$	204,776	$	1,542,230
LIABILITIES
Borrowings	$	73,815		$	112,511	$	319,797	$	—	$	133	$	100,184	$	147,866	$	256,866	$	172,296	$	1,183,468
Accrued interest expense	255			56		299		—		—		48		115		205		378		1,356
Derivatives, at fair value	—			—		—		—		—		1,504		8,337		—		—		9,841
Accounts payable and    other liabilities	133			18		22		284		519		4		1		—		3,169		4,150
Total liabilities	$	74,203		$	112,585	$	320,118	$	284	$	652	$	101,740	$	156,319	$	257,071	$	175,843	$	1,198,815

(1) Includes $51.3 million available for reinvestment in certain of the securitizations.

(2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE.

Supplemental Cash Flow Information

Supplemental disclosure of cash flow information (in thousands):

	Three Months Ended
	March 31,
	2014		2013
Non-cash financing activities include the following:
Distributions on common stock declared but not paid	$	25,663	$	21,634
Distribution on preferred stock declared but not paid	$	2,520	$	1,311
Issuance of restricted stock	$	640	$	35

Investment Trading Securities at Fair Value

The following table summarizes RSO's structured notes and residential mortgage-backed securities (“RMBS”) which are classified as investment securities, trading and carried at fair value (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2014
Structured notes, trading	$	8,057	$	3,082	$	(1,590	)	$	9,549
RMBS	1,909		—		(1,471		)	438
Total	$	9,966	$	3,082	$	(3,061	)	$	9,987
December 31, 2013
Structured notes, trading	$	8,057	$	4,050	$	(1,000	)	$	11,107
RMBS	1,919		—		(1,468		)	451
Total	$	9,976	$	4,050	$	(2,468	)	$	11,558

Available-for-sale Securities

The following table summarizes RSO's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands):

	Amortized Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2014
CMBS	$	186,703	$	7,465	$	(12,877	)	181,291
Asset-backed securities ("ABS")	35,648		1,519		(328		)	36,839
Structured notes	12,841		—		—			12,841
Corporate bonds	2,603		24		(47		)	2,580
Total	$	237,795	$	9,008	$	(13,252	)	$	233,551
December 31, 2013:
CMBS	$	185,178	$	7,570	$	(12,030	)	$	180,718
ABS	25,406		1,644		(394		)	26,656
Structured notes	5,369		—		—			5,369
Corporate bonds	2,517		16		(70		)	2,463
Total	$	218,470	$	9,230	$	(12,494	)	$	215,206

(1) As of March 31, 2014 and December 31, 2013, $159.1 million and $162.6 million, respectively, of securities were pledged as collateral security under related financings.

The following table summarizes RSO's sales of investment securities available-for-sale during the period indicated, (in thousands, except number of securities):

	Positions Sold	Par Amount Sold		Realized Gain (Loss)
March 31, 2014
CMBS position	3	$	12,500	$	(298	)
March 31, 2013
Corporate bond position	2	$	700	$	18

The aggregate discount (premium) due to interest rate changes were as follows (in thousands):

	March 31, 2014		December 31, 2013
CMBS	$	6,170	$	6,583
ABS	$	2,174	$	2,394
Corporate bond	$	103	$	(68	)

Estimated maturities of available for sale securities

The following table summarizes the estimated maturities of RSO’s investment securities according to their estimated weighted average life classifications (in thousands, except percentages):

Weighted Average Life	Fair Value			Amortized Cost		Weighted Average Coupon
March 31, 2014
Less than one year	$	39,393	(1)	$	49,991	4.31	%
Greater than one year and less than five years	138,699			132,935		5.04	%
Greater than five years and less than ten years	38,152			37,319		1.43	%
Greater than ten years	17,307			17,550		9.24	%
Total	$	233,551		$	237,795	4.64	%
December 31, 2013:
Less than one year	$	39,256	(1)	$	40,931	5.25	%
Greater than one year and less than five years	139,700			141,760		4.69	%
Greater than five years and less than ten years	26,526			25,707		1.10	%
Greater than ten years	9,724			10,072		7.90	%
Total	$	215,206		$	218,470	4.49	%

(1) RSO expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full.

Unrealized Losses Along with the Related Fair Value, Aggregated by the Length of Time the Investments were in a Continuous Unrealized Loss Position

The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, of those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities):

	Less than 12 Months						More than 12 Months						Total
	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities
March 31, 2014
CMBS	$	51,979	$	(8,478	)	28	$	13,308	$	(4,399	)	12	$	65,287	$	(12,877	)	40
ABS	—		—			—	4,337		(328		)	8	4,337		(328		)	8
Corporate Bonds	—		—			—	891		(47		)	1	891		(47		)	1
Total temporarily impaired securities	$	51,979	$	(8,478	)	28	$	18,536	$	(4,774	)	21	$	70,515	$	(13,252	)	49
December 31, 2013:
CMBS	$	52,012	$	(7,496	)	34	$	14,159	$	(4,534	)	10	$	66,171	$	(12,030	)	44
ABS	143		(1		)	1	6,692		(393		)	9	6,835		(394		)	10
Corporate Bonds	865		(70		)	1	—		—			—	865		(70		)	1
Total temporarily impaired securities	$	53,020	$	(7,567	)	36	$	20,851	$	(4,927	)	19	$	73,871	$	(12,494	)	55

Investments in real estate

The table below summarizes RSO's investments in real estate (in thousands, except number of properties):

	As of March 31, 2014				As of December 31, 2013
	Book Value			Number of Properties	Book Value			Number of Properties
Multi-family property	$	22,109		1	$	22,107		1
Office property	—			—	10,273			1
Subtotal	22,109				32,380
Less:  Accumulated depreciation	(2,138		)		(2,602		)
Investments in real estate	$	19,971			$	29,778

Schedule of Receivables with Imputed Interest

The following is a summary of RSO’s loans held for investment (in thousands):

Loan Description	Principal			Unamortized (Discount) Premium (1)			Carrying Value (2)
March 31, 2014
Commercial real estate loans:
Whole loans	$	837,514		$	(3,661	)	$	833,853
B notes	16,242			(74		)	16,168
Mezzanine loans	64,390			(91		)	64,299
Total commercial real estate loans	918,146			(3,826		)	914,320
Bank loans (3)	690,494			(3,068		)	687,426
Residential mortgage loans (4)	16,960			—			16,960
Subtotal loans before allowances	1,625,600			(6,894		)	1,618,706
Allowance for loan loss	(6,585		)	—			(6,585		)
Total	$	1,619,015		$	(6,894	)	$	1,612,121
December 31, 2013
Commercial real estate loans:
Whole loans	$	749,083		$	(3,294	)	$	745,789
B notes	16,288			(83		)	16,205
Mezzanine loans	64,417			(100		)	64,317
Total commercial real estate loans	829,788			(3,477		)	826,311
Bank loans (3)	566,056			(4,033		)	562,023
Residential mortgage loans (4)	16,915			—			16,915
Subtotal loans before allowances	1,412,759			(7,510		)	1,405,249
Allowance for loan loss	(13,807		)	—			(13,807		)
Total	$	1,398,952		$	(7,510	)	$	1,391,442

(1) Amounts include deferred amendment fees of $200,000 and $216,000 and deferred upfront fees of $127,000 and $141,000 being amortized over the life of the bank loans as of March 31, 2014 and December 31, 2013, respectively.  Amounts include loan origination fees of $3.7 million and $3.3 million and loan extension fees of $62,000 and $73,000 being amortized over the life of the commercial real estate loans as of March 31, 2014 and December 31, 2013, respectively.

(2) Substantially all loans are pledged as collateral under various borrowings at March 31, 2014 and December 31, 2013 , respectively.

(3) Amounts include $272,000 and $6.9 million of bank loans held for sale at March 31, 2014 and December 31, 2013, respectively.

(4) Amount includes $15.1 million and $15.0 million of residential mortgage loans held for sale at March 31, 2014 and December 31, 2013, respectively.

Summary of the weighted average life of bank loans at amortized cost

The following is a summary of the weighted average life of RSO’s bank loans held for investment, at amortized cost (in thousands):

	March 31, 2014		December 31, 2013
Less than one year	$	44,852	$	36,985
Greater than one year and less than five years	489,068		379,874
Five years or greater	153,506		145,164
	$	687,426	$	562,023

Summary of the commercial real estate loans

The following is a summary of RSO’s commercial real estate loans held for investment (in thousands):

Description	Quantity	Amortized Cost		Contracted Interest Rates	Maturity Dates(3)
March 31, 2014
Whole loans, floating rate (1) (4) (5)	55	$	833,853	LIBOR plus 2.13% to LIBOR plus 12.14%	April 2014 to February 2019
B notes, fixed rate	1	16,168		8.68%	April 2016
Mezzanine loans, floating rate	1	12,467		LIBOR plus 15.32%	April 2016
Mezzanine loans, fixed rate (6)	3	51,832		0.50% to 18.71%	September 2014 to September 2021
Total (2)	60	$	914,320
December 31, 2013
Whole loans, floating rate (1) (4)	51	$	745,789	LIBOR plus 2.68% to LIBOR plus 12.14%	March 2014 to February 2019
B notes, fixed rate	1	16,205		8.68%	April 2016
Mezzanine loans, floating rate	1	12,455		LIBOR plus 15.32%	April 2016
Mezzanine loans, fixed rate (6)	3	51,862		0.50% to 18.72%	September 2014 to September 2019
Total (2)	56	$	826,311

(1) Whole loans had $23.1 million and $13.7 million in unfunded loan commitments as of March 31, 2014 and December 31, 2013, respectively.  These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained.

(2) The total does not include an allowance for loan loss of $5.8 million and $10.4 million as of March 31, 2014 and December 31, 2013, respectively.

(3) Maturity dates do not include possible extension options that may be available to the borrowers.

(4) As of March 31, 2014, floating rate whole loans includes $783,000 and $12.6 million mezzanine components of two whole loans, which have a fixed rate of 15.0% and 12.0%, respectively.

(5) Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of March 31, 2014.

(6) Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity.

Summary of the weighted average life of the commercial real estate loans at amortized cost

The following is a summary of the weighted average life of RSO’s commercial real estate loans, at amortized cost (in thousands):

Description	2014		2015		2016 and Thereafter		Total
March 31, 2014
B notes	$	—	$	—	$	16,168	$	16,168
Mezzanine loans	5,711		—		58,588		64,299
Whole loans	5,110		17,967		810,776		833,853
Total (1)	$	10,821	$	17,967	$	885,532	$	914,320
December 31, 2013
B notes	$	—	$	—	$	16,205	$	16,205
Mezzanine loans	5,711		—		58,606		64,317
Whole loans	—		17,949		727,840		745,789
Total (1)	$	5,711	$	17,949	$	802,651	$	826,311

(1) Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers.

Allocation of Allowance for Loan Loss

The following is a summary of the allocation of the allowance for loan loss with respect to RSO’s commercial real estate and bank loans (in thousands, except percentages) by asset class:

Description	Allowance for Loan Loss		Percentage of Total Allowance
March 31, 2014
B notes	$	132	2.00%
Mezzanine loans	524		7.96%
Whole loans	5,188		78.79%
Bank loans	741		11.25%
Total	$	6,585
December 31, 2013
B notes	$	174	1.26%
Mezzanine loans	559		4.05%
Whole loans	9,683		70.13%
Bank loans	3,391		24.56%
Total	$	13,807

Schedule of Equity Method Investments

The following table shows RSO's investments in unconsolidated entities as of March 31, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three months ended March 31, 2014 and 2013 (in thousands):

		Balance as of		Balance as of		For the three months ended			For the three months ended
	Ownership %	March 31, 2014		December 31, 2013		March 31, 2014			March 31, 2013
Varde Investment Partners, L.P.	7.5%	$	673	$	674	$	(1	)	$	24
RRE VIP Borrower, LLC	3% to 5%	—		—		866			(113		)
Investment in LEAF Preferred Stock	27.5%	40,421		41,016		(594		)	(336		)
Investment in RCT I and II (1)	3%	1,548		1,548		(589		)	(593		)
Investment in Preferred Equity (2)	various	2,400		8,124		1,228			239
Investment in CVC Global Opps Fund	34.4%	17,011		16,177		834			—
Investment in Life Care Funding (3)	30%	—		1,530		(75		)	—
Total		$	62,053	$	69,069	$	1,669		$	(779	)

(1) For the three months ended March 31, 2014 and 2013, these amounts are recorded in interest expense on RSO's consolidated statements of income.

(2) For the three months ended March 31, 2014 and 2013, these amounts are recorded in interest income on loans on RSO's consolidated statements of income.

(3) For the three months ended March 31, 2014, RSO recorded equity in net earnings (losses) of unconsolidated subsidiaries on RSO's consolidated statements of income for two months before LCF was consolidated.

Summary of Activity in the Allowance for Credit Losses for the Company's Financing Receivables

The following tables show the allowance for loan losses and recorded investments in loans for the years indicated (in thousands):

	Commercial Real Estate Loans			Bank Loans			Residential Mortgage Loans		Loans Receivable-Related Party		Total
March 31, 2014
Allowance for Loan Losses:
Allowance for losses at January 1, 2014	$	10,416		$	3,391		$	—	$	—	$	13,807
Provision for loan loss	(4,572		)	612			—		—		(3,960		)
Loans charged-off	—			(3,262		)	—		—		(3,262		)
Allowance for losses at March 31, 2014	$	5,844		$	741		$	—	$	—	$	6,585
Ending balance:
Individually evaluated for impairment	$	—		$	441		$	—	$	—	$	441
Collectively evaluated for impairment	$	5,844		$	300		$	—	$	—	$	6,144
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	196,883		$	1,566		$	—	$	6,498	$	204,947
Collectively evaluated for impairment	$	717,437		$	685,248		$	16,960	$	—	$	1,419,645
Loans acquired with deteriorated credit quality	$	—		$	612		$	—	$	—	$	612
December 31, 2013:
Allowance for Loan Losses:
Allowance for losses at January 1, 2013	$	7,986		$	9,705		$	—	$	—	$	17,691
Provision for loan loss	2,686			334			—		—		3,020
Loans charged-off	(256		)	(6,648		)	—		—		(6,904		)
Allowance for losses at December 31, 2013	$	10,416		$	3,391		$	—	$	—	$	13,807
Ending balance:
Individually evaluated for impairment	$	4,572		$	2,621		$	—	$	—	$	7,193
Collectively evaluated for impairment	$	5,844		$	770		$	—	$	—	$	6,614
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—
Loans:
Ending balance:
Individually evaluated for impairment	$	194,403		$	3,554		$	—	$	6,966	$	204,923
Collectively evaluated for impairment	$	631,908		$	548,219		$	16,915	$	—	$	1,197,042
Loans acquired with deteriorated credit quality	$	—		$	—		$	—	$	—	$	—

Financing Receivable Credit Quality Indicators

Credit risk profiles of commercial real estate loans were as follows (in thousands):

	Rating 1		Rating 2		Rating 3		Rating 4		Held for Sale		Total
As of March 31, 2014
Whole loans	$	768,243	$	32,500	$	33,110	$	—	$	—	$	833,853
B notes	16,168		—		—		—		—		16,168
Mezzanine loans	51,832		12,467		—		—		—		64,299
	$	836,243	$	44,967	$	33,110	$	—	$	—	$	914,320
As of December 31, 2013
Whole loans	$	680,718	$	32,500	$	32,571	$	—	$	—	$	745,789
B notes	16,205		—		—		—		—		16,205
Mezzanine loans	51,862		12,455		—		—		—		64,317
	$	748,785	$	44,955	$	32,571	$	—	$	—	$	826,311

Credit risk profiles of bank loans were as follows (in thousands):

	Rating 1		Rating 2		Rating 3		Rating 4		Rating 5		Held for Sale		Total
As of March 31, 2014
Bank loans	$	618,896	$	47,742	$	17,340	$	998	$	2,178	$	272	$	687,426
As of December 31, 2013
Bank loans	$	488,004	$	42,476	$	18,806	$	2,333	$	3,554	$	6,850	$	562,023

Aging of the Company's Past Due Financing Receivables, Gross of Allowances for Credit Losses

The following table shows the loan portfolio aging analysis as of the dates indicated at cost basis (in thousands):

	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
March 31, 2014
Whole loans	$	—	$	—	$	—	$	—	$	833,853	$	833,853	$	—
B notes	—		—		—		—		16,168		16,168		—
Mezzanine loans	—		—		—		—		64,299		64,299		—
Bank loans	—		—		612		612		686,814		687,426		—
Residential mortgage loans	258		—		—		258		16,702		16,960		—
Loans receivable-related party	—		—		—		—		6,498		6,498		—
Total loans	$	258	$	—	$	612	$	870	$	1,624,334	$	1,625,204	$	—
December 31, 2013
Whole loans	$	—	$	—	$	—	$	—	$	745,789	$	745,789	$	—
B notes	—		—		—		—		16,205		16,205		—
Mezzanine loans	—		—		—		—		64,317		64,317		—
Bank loans	—		—		3,554		3,554		558,469		562,023		—
Residential mortgage loans	234		91		268		593		16,322		16,915		—
Loans receivable-related party	—		—		—		—		6,966		6,966		—
Total loans	$	234	$	91	$	3,822	$	4,147	$	1,408,068	$	1,412,215	$	—

Information about Company's Impaired Financing Receivables

The following tables show impaired loans as of the dates indicated (in thousands):

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
March 31, 2014
Loans without a specific valuation allowance:
Whole loans	$	158,811	$	158,811	$	—		$	156,694	$	12,103
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	1,916
Bank loans	$	612	$	612	$	—		$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	5,372	$	5,372	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	—	$	—	$	—		$	—	$	—
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	1,566	$	1,566	$	(441	)	$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Total:
Whole loans	$	158,811	$	158,811	$	—		$	156,694	$	12,103
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		1,916
Bank loans	2,178		2,178		(441		)	—		—
Residential mortgage loans	—		—		—			—		—
Loans receivable - related party	5,372		5,372		—			—		—
	$	204,433	$	204,433	$	(441	)	$	194,766	$	14,019

	Recorded Balance		Unpaid Principal Balance		Specific Allowance			Average Investment in Impaired Loans		Interest Income Recognized
December 31, 2013:
Loans without a specific valuation allowance:
Whole loans	$	130,759	$	130,759	$	—		$	123,495	$	8,439
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	38,072	$	38,072	$	—		$	38,072	$	1,615
Bank loans	$	—	$	—	$	—		$	—	$	—
Residential mortgage loans	$	315	$	268	$	—		$	—	$	—
Loans receivable - related party	$	5,733	$	5,733	$	—		$	—	$	—
Loans with a specific valuation allowance:
Whole loans	$	25,572	$	25,572	$	(4,572	)	$	24,748	$	1,622
B notes	$	—	$	—	$	—		$	—	$	—
Mezzanine loans	$	—	$	—	$	—		$	—	$	—
Bank loans	$	3,554	$	3,554	$	(2,621	)	$	—	$	—
Residential mortgage loans	$	—	$	—	$	—		$	—	$	—
Loans receivable - related party	$	—	$	—	$	—		$	—	$	—
Total:
Whole loans	$	156,331	$	156,331	$	(4,572	)	$	148,243	$	10,061
B notes	—		—		—			—		—
Mezzanine loans	38,072		38,072		—			38,072		1,615
Bank loans	3,554		3,554		(2,621		)	—		—
Residential mortgage loans	315		268		—			—		—
Loans receivable - related party	5,733		5,733		—			—		—
	$	204,005	$	203,958	$	(7,193	)	$	186,315	$	11,676

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables show troubled-debt restructurings in RSO's loan portfolio (in thousands) during the three months ended March 31, 2013:

	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Whole loans	6	$	153,958	$	136,672
B notes	—	—		—
Mezzanine loans	1	38,072		38,072
Bank loans	—	—		—
Residential mortgage loans	—	—		—
Loans receivable	1	7,797		7,797
Total loans	8	$	199,827	$	182,541

Schedule of Intangible Assets and Goodwill

The following table summarizes intangible assets at December 31, 2013 and 2012 (in thousands).

	Asset Balance		Accumulated Amortization			Net Asset
March 31, 2014
Investment in RCAM	$	21,213	$	(10,424	)	$	10,789
Investments in real estate:
In-place leases	920		(920		)	—
Above (below) market leases	29		(29		)	—
Investment in PCA:
Wholesale or correspondent relationships	600		(106		)	494
Total intangible assets	$	22,762	$	(11,479	)	$	11,283
December 31, 2013
Investment in RCAM	$	21,213	$	(9,980	)	$	11,233
Investments in real estate:
In-place leases	2,461		(2,430		)	31
Above (below) market leases	29		(29		)	—
Investment in PCA:
Wholesale or correspondent relationships	600		(42		)	558
Total intangible assets	$	24,303	$	(12,481	)	$	11,822

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table sets forth the allocation of the purchase price as of December 31, 2013 (in thousands):

Assets acquired:
Cash and cash equivalents	$	1,233
Loans held for sale	15,021
Loans held for investment	2,071
Wholesale and correspondent relationships	600
Other assets	5,828
Total assets	24,753
Less: Liabilities assumed:
Borrowings	14,584
Other liabilities	2,165
Total liabilities	16,749
Gain on bargain purchase	391
Total cash purchase price	$	7,613

Debt and Credit Facilities

RSO historically has financed the acquisition of its investments, including investment securities, loans and lease receivables, through the use of secured and unsecured borrowings in the form of CDOs, CLOs securitized notes, repurchase agreements, secured term facilities, warehouse facilities and trust preferred securities issuances.  Certain information with respect to RSO’s borrowings at March 31, 2014 and December 31, 2013 is summarized in the following table (in thousands, except percentages):

	Outstanding Borrowings		Unamortized Issuance Costs and Discounts		Principal Outstanding		Weighted Average Borrowing Rate	Weighted Average Remaining Maturity	Value of Collateral		Date Securitization Closed
March 31, 2014
RREF CDO 2006-1 Senior Notes	$	100,184	$	129	$	100,313	1.86%	32.4 years	$	169,809	August 2006
RREF CDO 2007-1 Senior Notes	147,866		509		148,375		0.91%	32.5 years	297,703		June 2007
RCC CRE Notes 2013	256,866		3,974		260,840		2.02%	14.7 years	303,410		December 2013
Apidos CDO I Senior Notes	73,815		—		73,815		1.66%	3.3 years	88,532		August 2005
Apidos CDO III Senior Notes	112,511		40		112,551		0.94%	6.5 years	124,677		May 2006
Apidos Cinco CDO Senior Notes	319,797		703		320,500		0.74%	6.1 years	345,029		May 2007
Whitney CLO I Senior Notes (1)	133		—		133		—%	N/A	157		N/A
Moselle CLO S.A. Senior Notes	167,181		—		167,181		0.95%	5.8 years	202,247		October 2005
Moselle CLO S.A. Securitized Borrowings	5,116		—		5,116		—%	N/A	—		N/A
Unsecured Junior Subordinated Debentures (2)	51,054		494		51,548		4.18%	22.6 years	—		May/Sept 2006
6.0% Convertible Senior Notes	107,130		7,870		115,000		6.00%	4.7 years	—		October 2013
CRE - Term Repurchase Facilities (3)	99,726		743		100,469		2.63%	18 days	153,895		N/A
CMBS - Term Repurchase Facility (4)	36,819		—		36,819		1.37%	18 days	44,386		N/A
Residential Mortgage Financing Agreements	14,686		—		14,686		4.23%	147 days	16,728		N/A
CMBS - Short Term Repurchase Agreements	9,205		—		9,205		1.40%	24 days	13,246		N/A
Total	$	1,502,089	14,462		1,516,551		1.83%	10.9 years	$	1,759,819

	Outstanding Borrowings		Unamortized Issuance Costs and Discounts		Principal Outstanding		Weighted Average Borrowing Rate		Weighted Average Remaining Maturity	Value of Collateral		Date Securitization Closed
December 31, 2013
RREF CDO 2006-1 Senior Notes	$	94,004	$	205	$	94,209	1.87	%	32.6 years	$	169,115	August 2006
RREF CDO 2007-1 Senior Notes	177,837		719		178,556		0.84	%	32.8 years	318,933		June 2007
RCC CRE Notes 2013	256,571		4,269		260,840		2.03	%	15.0 years	305,586		December 2013
Apidos CDO I Senior Notes	87,131		—		87,131		1.68	%	3.6 years	103,736		August 2005
Apidos CDO III Senior Notes	133,209		117		133,326		0.88	%	6.7 years	145,930		May 2006
Apidos Cinco CDO Senior Notes	321,147		853		322,000		0.74	%	6.4 years	342,796		May 2007
Whitney CLO I Securitized Borrowings (1)	440		—		440		—	%	N/A	885		N/A
Unsecured Junior Subordinated Debentures (2)	51,005		543		51,548		4.19	%	22.8 years	—		May/Sept 2006
6.0% Convertible Senior Notes	106,535		8,465		115,000		6.00	%	4.9 years	—		October 2013
CRE - Term Repurchase Facilities (3)	29,703		1,033		30,736		2.67	%	21 days	48,186		N/A
CMBS - Term Repurchase Facility (4)	47,601		12		47,613		1.38	%	21 days	56,949		N/A
Residential Mortgage Financing Agreements	14,627		—		14,627		4.24	%	216 days	16,487		N/A
Total	$	1,319,810	$	16,216	$	1,336,026	1.87	%	13.1 years	$	1,508,603

(1) The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Securitized Borrowings, respectively.

(2) Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively.

(3) Amount also includes accrued interest costs of $98,000 and $26,000 related to CRE repurchase facilities as of March 31, 2014 and December 31, 2013, respectively.

(4) Amount also includes accrued interest costs of $18,000 and $22,000 related to CMBS repurchase facilities as of March 31, 2014 and December 31, 2013, respectively.

Schedule of Short-term Debt

The following table sets forth certain information with respect to RSO's borrowings at March 31, 2014 and December 31, 2013 (dollars in thousands):

	March 31, 2014						December 31, 2013
	Outstanding Borrowings		Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate	Outstanding Borrowings			Value of Collateral		Number of Positions as Collateral	Weighted Average Interest Rate
CMBS Term Repurchase Facility
Wells Fargo Bank (1)	$	36,819	$	44,386	48	1.37%	$	47,601		$	56,949	44	1.38%
CRE Term Repurchase Facilities
Wells Fargo Bank (2)	96,140		148,312		7	2.62%	30,003			48,186		8	2.67%
Deutsche Bank AG (3)	3,586		5,583		1	3.03%	(300		)	—		—	—%
Short-Term Repurchase Agreements - CMBS
Wells Fargo Securities, LLC	—		—		—	—%	—			—		—	—%
Deutsche Bank Securities, LLC	9,205		13,246		4	1.40%	—			—		—	—%
Residential Mortgage Financing Agreements
New Century Bank	10,275		11,145		72	4.19%	11,916			13,089		74	4.17%
ViewPoint Bank, NA	4,411		5,584		25	4.46%	2,711			3,398		17	4.58%
Totals	$	160,436	$	228,256			$	91,931		$	121,622

(1) The Wells Fargo CMBS term facility borrowing includes zero and $12,000 of deferred debt issuance costs as of March 31, 2014 and December 31, 2013, respectively.

(2) The Wells Fargo CRE term repurchase facility borrowing includes $577,000 and $732,000 of deferred debt issuance costs as of March 31, 2014 and December 31, 2013, respectively.

(3) The Deutsche Bank term repurchase facility includes $166,000 and $300,000 of deferred debt issuance costs as of March 31, 2014 and December 31, 2013, respectively.

Schedule of Linked Transactions

The assets in the following table are accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on RSO's consolidated balance sheets.

	March 31, 2014						December 31, 2013
	Borrowings Under Linked Transactions (1)		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions	Borrowings Under Linked Transactions (1)		Value of Collateral Under Linked Transactions		Number of Positions as Collateral Under Linked Transactions	Weighted Average Interest Rate of Linked Transactions
CMBS Term    Repurchase    Facility
Wells Fargo Bank	$	6,156	$	7,994	7	1.64%	$	6,506	$	8,345	7	1.65%
CRE Term    Repurchase    Facility
Wells Fargo Bank	—		—		—	—%	—		—		—	—%
Short-Term    Repurchase    Agreements -    CMBS
JP Morgan Securities, LLC	12,006		18,342		4	0.83%	17,020		24,814		4	0.99%
Wells Fargo Securities, LLC	19,621		27,982		8	1.19%	21,969		30,803		9	1.19%
Deutsche Bank Securities, LLC	33,883		51,840		14	1.41%	18,599		29,861		9	1.43%
Totals	$	71,666	$	106,158			$	64,094	$	93,823

Schedule of Amount at Risk under Credit Facility

The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands):

	Amount at Risk (1)		Weighted Average Maturity in Days	Weighted Average Interest Rate
March 31, 2014
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association (2)	$	8,822	18	1.37%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	57,882	18	2.62%
Deutsche Bank Securities, LLC	$	9,155	18	3.03%
Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC (3)	$	6,403	14	0.83%
Wells Fargo Securities, LLC	$	8,411	6	1.19%
Deutsche Bank Securities, LLC	$	18,176	24	1.14%
December 31, 2013
CMBS Term Repurchase Facility
Wells Fargo Bank, National Association (2)	$	10,796	21	1.38%
CRE Term Repurchase Facilities
Wells Fargo Bank, National Association	$	20,718	21	2.67%
Short-Term Repurchase Agreements - CMBS
JP Morgan Securities, LLC (3)	$	7,882	11	0.99%
Wells Fargo Securities, LLC	$	8,925	2	1.19%
Deutsche Bank Securities, LLC	$	11,418	22	1.43%

(1) Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense.

(2) $6.2 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of March 31, 2014 and December 31, 2013, respectively.

(3) $12.0 million and $17.0 million of linked repurchase agreement borrowings are being included as derivative instruments as of March 31, 2014 and December 31, 2013, respectively.

Company's Asset Recorded at Fair Value on Recurring Basis

The following table presents information about RSO’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2014
Assets:
Investment securities, trading	$	—	$	—	$	9,987	$	9,987
Investment securities available-for-sale	1,764		816		230,971		233,551
CMBS - linked transactions	—		—		34,829		34,829
Derivatives (net)	—		556		—		556
Total assets at fair value	$	1,764	$	1,372	$	275,787	$	278,923
Liabilities:
Derivatives (net)	—		401		9,841		10,242
Total liabilities at fair value	$	—	$	401	$	9,841	$	10,242
December 31, 2013
Assets:
Investment securities, trading	$	—	$	—	$	11,558	$	11,558
Investment securities available-for-sale	2,370		92		207,375		209,837
CMBS - linked transactions	—		—		30,066		30,066
Total assets at fair value	$	2,370	$	92	$	248,999	$	251,461
Liabilities:
Derivatives (net)	—		395		10,191		10,586
Total liabilities at fair value	$	—	$	395	$	10,191	$	10,586

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

The following table presents additional information about assets which are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	CMBS Including Linked Transactions			ABS			RMBS			Structured Finance			Total
Beginning balance, January 1, 2014	$	210,785		$	26,656		$	451		$	11,107		$	248,999
Total gains or losses (realized or unrealized):
Included in earnings	103			214			—			—			317
Purchases	33,402			14,306			—			12,841			60,549
Sales	(12,314		)	(2,494		)	—			—			(14,808		)
Paydowns	(17,188		)	(1,785		)	(10		)	—			(18,983		)
Included in OCI	1,332			(59		)	(2		)	(1,558		)	(287		)
Transfers out of Level 2	—			—			—			—			—
Transfers into level 3	—			—			—			—			—
Ending balance, March 31, 2014	$	216,120		$	36,838		$	439		$	22,390		$	275,787

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which RSO has utilized Level 3 inputs (in thousands):

	Level 3
Beginning balance, January 1, 2014	$	10,191
Unrealized losses – included in accumulated other comprehensive income	(350		)
Ending balance, March 31, 2014	$	9,841

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by RSO to determine such fair value as follows (in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2014
Assets:
Loans held for sale	$	—	$	272	$	15,117	$	15,389
Impaired loans	—		1,125		—		1,125
Total assets at fair value	$	—	$	1,397	$	15,117	$	16,514
December 31, 2013
Assets:
Loans held for sale	$	—	$	6,850	$	15,066	$	21,916
Impaired loans	—		225		—		225
Total assets at fair value	$	—	$	7,075	$	15,066	$	22,141

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands):

	Fair Value at March 31, 2014		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Interest rate swap agreements	$	9,841	Discounted cash flow	Weighted average credit spreads	5.11	%

Fair Value of Financial Instruments

The fair values of RSO’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands):

			Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2014
Loans held-for-investment	$	1,596,731	$	1,591,875	$	—	$	687,086	$	904,789
Loans receivable-related party	$	6,498	$	6,498	$	—	$	—	$	6,498
CDO notes	$	1,183,469	$	1,066,399	$	—	$	1,066,399	$	—
Junior subordinated notes	$	51,054	$	17,548	$	—	$	—	$	17,548
Repurchase agreements	$	160,436	$	160,436	$	—	$	—	$	160,436
December 31, 2013
Loans held-for-investment	$	1,369,526	$	1,358,434	$	—	$	545,352	$	813,082
Loans receivable-related party	$	6,966	$	6,966	$	—	$	—	$	6,966
CDO notes	$	1,070,339	$	653,617	$	—	$	653,617	$	—
Junior subordinated notes	$	51,005	$	17,499	$	—	$	—	$	17,499
Repurchase agreements	$	77,304	$	77,304	$	—	$	—	$	77,304