, both of which are classified within Level 2 of the GAAP fair value hierarchy.

Our investments classified as AFS are presented within other assets in the accompanying consolidated balance sheets. We hold several positions in the securitization trust that pay interest currently, and we also hold the first loss position in the securitization trust, which accrues interest over the term of the investment. We are accreting the discount to the $100.9 million face value of the investments into interest income using the effective interest method over the remaining expected term of the investments, which, as of September 30, 2016, was approximately 4.7 years. Our amortized cost basis for these investments, which represents the original cost adjusted for interest accretion less interest payments received, was $71.3 million and $67.8 million at September 30, 2016 and December 31, 2015, respectively. We estimated the fair value of these investments to be $74.6 million and $65.5 million at September 30, 2016 and December 31, 2015, respectively.

We estimate the fair value of these investments in accordance with GAAP using an income and market approach primarily with observable inputs, including yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The fair value of the positions that pay interest currently typically moves in an inverse relationship with movements in interest rates. The fair value of the first loss position is primarily correlated to collateral quality and demand for similar subordinate commercial mortgage-backed securities.

For our variable rate debt, we are sometimes required by limited partners in our consolidated real estate partnerships to limit our exposure to interest rate fluctuations by entering into interest rate swap agreements, which moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. We estimate the fair value of interest rate swaps using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based.

The following table sets forth a summary of the changes in fair value in our interest rate swaps (in thousands):



	Nine Months Ended September 30,
	2016			2015
Beginning balance	$	(4,938	)	$	(5,273	)
Unrealized losses included in interest expense	(33		)	(36		)
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss	1,208			1,260
Unrealized losses included in equity and partners’ capital	(748		)	(1,517		)
Ending balance	$	(4,511	)	$	(5,566	)