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Debt Securities (Tables)
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Estimated Fair Value
The amortized cost and estimated fair value of the Company’s debt securities at December 31, 2013 are summarized as follows:
 
Security Description
Face
Amount
 
Amortized
Cost
 
Gross
Unrealized
Gain
 
Gross
Unrealized
Loss
 
Estimated
Fair Value
CMBS (Available-for-Sale)
$
33,066

 
$
34,232

 
$
—

 
$
(870
)
 
$
33,362

CMBS (Fair Value Option)
155,577

 
155,946

 
2,313

 
(173
)
 
158,086

Total
$
188,643

 
$
190,178

 
$
2,313

 
$
(1,043
)
 
$
191,448

During June 2012, the Company purchased CMBS with a face amount of $74,854 for which the obligors are certain special purpose entities formed in 2010 to hold substantially all of the assets of Hilton Worldwide, Inc. (the “Hilton CMBS”). The Hilton CMBS was purchased for $70,655 and was financed with $49,459 of borrowings under the Company’s master repurchase agreement with Wells Fargo Bank, N.A. (the “Wells Facility”), which was amended to provide up to $100,000 of additional financing for the Hilton CMBS. See Note 8 – Borrowings for a description of the Wells Facility. The Company has elected the fair value option for the Hilton CMBS. The Hilton CMBS and related borrowings were fully repaid in November 2013.
During March 2012, the Company sold CMBS with an amortized cost of $137,423 resulting in a net realized gain of $262, which was comprised of realized gains of $345 and realized losses of $83. The sale generated proceeds of $14,621 after the repayment of $123,064 of borrowings under the Wells Facility.
The amortized cost and estimated fair value of the Company’s debt securities at December 31, 2012 are summarized as follows:
 
Security Description
Face
Amount
 
Amortized
Cost
 
Gross
Unrealized
Gain
 
Gross
Unrealized
Loss
 
Estimated
Fair Value
CMBS (Available-for-Sale)
$
65,410

 
$
67,109

 
$
249

 
$
(279
)
 
$
67,079

CMBS (Fair Value Option)
134,694

 
136,354

 
2,061

 
(167
)
 
138,248

CMBS – Hilton (Fair Value Option)
73,239

 
70,250

 
3,311

 
—

 
73,561

Total
$
273,343

 
$
273,713

 
$
5,621

 
$
(446
)
 
$
278,888
Overall Statistics for Company's AAA-Rated CMBS Investments Calculated on Weighted Average Basis
The overall statistics for the Company’s CMBS investments (excluding the Hilton CMBS) calculated on a weighted average basis assuming no early prepayments or defaults as of December 31, 2013 and 2012 are as follows:
 
 
December 31,
2013
 
December 31,
2012
Credit Ratings *
AAA-CCC

 
AAA

Coupon
5.8
%
 
5.6
%
Yield
5.3
%
 
4.1
%
Weighted Average Life
3.1 years

 
1.8 years

*
Ratings per Fitch, Moody’s or S&P
Percentage Vintage, Property Type, and Location of Collateral Securing Company's AAA-Rated CMBS Investments Calculated on Weighted Average Basis
The percentage vintage, property type, and location of the collateral securing the Company’s CMBS investments (excluding the Hilton CMBS) calculated on a weighted average basis as of December 31, 2013 and 2012 are as follows:
 
Vintage
December 31,
2013
 
December 31,
2012
2006
3
%
 
1
%
2007
97

 
99

Total
100
%
 
100
%
Property Type
December 31,
2013
 
December 31,
2012
Office
35.5
%
 
40.5
%
Retail
24.1

 
23.2

Hotel
13.7

 
10.5

Multifamily
12.7

 
12.9

Other *
14.0

 
12.9

Total
100
%
 
100
%
*
No other individual category comprises more than 10% of the total.
 
Location
December 31,
2013
 
December 31,
2012
South Atlantic
23.4
%
 
21.8
%
Middle Atlantic
22.8

 
21.4

Pacific
17.6

 
23.8

Other *
36.2

 
33.0

Total
100
%
 
100
%
*
No other individual category comprises more than 10% of the total.