Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheet at September 30, 2015 and December 31, 2014:



	September 30, 2015						December 31, 2014
	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
Cash and cash equivalents	$	20,158		$	20,158		$	40,641		$	40,641
Restricted cash	30,127			30,127			30,127			30,127
Securities, held-to-maturity	153,799			153,983			154,283			154,980
Commercial first mortgage loans	905,681			911,279			458,520			465,510
Subordinate loans	861,808			872,433			561,182			566,385
Borrowings under repurchase agreements	(735,437		)	(735,700		)	(622,194		)	(621,269		)
Convertible senior notes, net	(247,736		)	(250,101		)	(246,464		)	(254,605		)
Participations sold	(119,407		)	(119,513		)	(89,584		)	(89,995		)

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The Company’s securities, held-to-maturity, commercial first mortgage loans, subordinate loans, borrowings under repurchase agreements, convertible senior notes and participations sold are carried at amortized cost on the condensed consolidated financial statements and are classified as Level III in the fair value hierarchy.