Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2021

The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on our condensed consolidated balance sheet at June 30, 2021 and December 31, 2020 ($ in thousands):


	June 30, 2021				December 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Cash and cash equivalents	$	204,581	$	204,581	$	325,498	$	325,498
Commercial mortgage loans, net	6,653,197		6,508,986		5,451,084		5,361,948
Subordinate loans and other lending assets, net(1)	866,908		774,257		1,045,893		1,027,582
Secured debt arrangements, net	(3,679,906)		(3,679,906)		(3,436,672)		(3,436,672)
Senior secured term loans, net	(774,569)		(784,112)		(483,465)		(475,263)
Senior secured notes, net	(493,694)		(496,145)		—		—
2022 Notes	(341,720)		(359,904)		(340,361)		(327,381)
2023 Notes	(226,065)		(234,747)		(225,293)		(214,875)
Participations sold	(27,662)		(27,695)		(34,974)		(34,919)
Debt related to real estate owned, held for sale	—		—		(33,000)		(33,000)

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(1)Includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying value.

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 we 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. Estimates of fair value for cash and cash equivalents, convertible senior notes, net, secured debt arrangements net and senior secured term loan, net are measured using observable Level I inputs as defined in "Note 3 - Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 - Fair Value Disclosure."