XML 74 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

September 30, 2013

(Dollars in Thousands)

 

 

 

 

 

Significant

 

Significant

 

 

 

Quoted Prices in

 

Other Observable

 

Unobservable

 

 

 

Active Markets

 

Inputs

 

Inputs

Assets:

Fair Value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Investments-trading:

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency MBS and CMOs

$
9,063 

 

$

 -

 

$
9,063 

 

$

 -

U.S. government agency debt securities

 
3,517 

 

 
3 

 

 
3,514 

 

 

 -

RMBS

 
2,935 

 

 

 -

 

 
2,935 

 

 

 -

CMBS

 
300 

 

 

 -

 

 
300 

 

 

 -

U.S. Treasury securities

 
182 

 

 
182 

 

 

 -

 

 

 -

Interests in securitizations (1)

 
344 

 

 

 -

 

 
140 

 

 
204 

SBA loans

 
29,272 

 

 

 -

 

 
28,996 

 

 
276 

Corporate bonds and redeemable preferred stock

 
27,241 

 

 
2,623 

 

 
24,618 

 

 

 -

Foreign government bonds

 
111 

 

 

 -

 

 
111 

 

 

 -

Municipal bonds

 
9,169 

 

 

 -

 

 
9,169 

 

 

 -

Exchange traded funds

 
6 

 

 
6 

 

 

 -

 

 

 -

Certificates of deposit

 
3,192 

 

 

 -

 

 
3,192 

 

 

 -

Equity securities

 
250 

 

 
143 

 

 
107 

 

 

 -

Total investments - trading

$
85,582 

 

$
2,957 

 

$
82,145 

 

$
480 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (2)

$
2,275 

 

$

 -

 

$

 -

 

$
2,275 

Star Asia (3)

 
21,118 

 

 

 -

 

 

 -

 

 
21,118 

Tiptree (4)

 
2,317 

 

 

 -

 

 
2,317 

 

 

 -

Star Asia Special Situations Fund (3)

 
3,203 

 

 

 -

 

 

 -

 

 
3,203 

Other equity securities

 
37 

 

 
24 

 

 
13 

 

 

 -

Interests in securitizations (1)

 
37 

 

 

 -

 

 

 -

 

 
37 

Residential loans

 
292 

 

 

 -

 

 
292 

 

 

 -

Foreign currency forward contracts

 
(271)

 

 
(271)

 

 

 -

 

 

 -

Total other investments, at fair value

$
29,008 

 

$
(247)

 

$
2,622 

 

$
26,633 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Trading securities sold, not yet purchased:

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency MBS

$
740 

 

$

 -

 

$
740 

 

$

 -

U.S. Treasury securities

 
33,265 

 

 
33,265 

 

 

 -

 

 

 -

RMBS

 
35 

 

 

 -

 

 
35 

 

 

 -

SBA loans

 
437 

 

 

 -

 

 
437 

 

 

 -

Corporate bonds and redeemable preferred stock

 
12,361 

 

 
247 

 

 
12,114 

 

 

 -

Foreign government bonds

 
8 

 

 

 -

 

 
8 

 

 

 -

Municipal bonds

 
120 

 

 

 -

 

 
120 

 

 

 -

Certificates of deposit

 
6,366 

 

 

 -

 

 
6,366 

 

 

 -

Total trading securities sold, not yet purchased

$
53,332 

 

$
33,512 

 

$
19,820 

 

$

 -

 

(1)Primarily comprised of CDOs, CLOs, and ABS.

(2)Hybrid Securities Fund—European.

(3)Real Estate Fund—Asian. 

(4)Diversified Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

December 31, 2012

(Dollars in Thousands)

 

 

 

 

 

Significant

 

Significant

 

 

 

Quoted Prices in

 

Other Observable

 

Unobservable

 

 

 

Active Markets

 

Inputs

 

Inputs

Assets:

Fair Value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Investments-trading:

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency MBS and CMOs

$
34,592 

 

$

 -

 

$
34,592 

 

$

 -

U.S. government agency debt securities

 
21,066 

 

 

 -

 

 
21,066 

 

 

 -

RMBS

 
583 

 

 

 -

 

 
583 

 

 

 -

CMBS

 
12 

 

 

 -

 

 
12 

 

 

 -

U.S. Treasury securities

 
147 

 

 
147 

 

 

 -

 

 

 -

Interests in securitizations (1)

 
352 

 

 

 -

 

 
57 

 

 
295 

SBA loans

 
15,705 

 

 

 -

 

 
15,705 

 

 

 -

Corporate bonds and redeemable preferred stock

 
56,022 

 

 
5,643 

 

 
50,379 

 

 

 -

Foreign government bonds

 
448 

 

 

 -

 

 
448 

 

 

 -

Municipal bonds

 
37,745 

 

 

 -

 

 
37,745 

 

 

 -

Certificates of deposit

 
8,934 

 

 

 -

 

 
8,934 

 

 

 -

Equity securities

 
533 

 

 
395 

 

 
138 

 

 

 -

Total investments - trading

$
176,139 

 

$
6,185 

 

$
169,659 

 

$
295 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (2)

$
2,054 

 

$

 -

 

$

 -

 

$
2,054 

Star Asia (3)

 
30,169 

 

 

 -

 

 

 -

 

 
30,169 

Tiptree (4)

 
2,834 

 

 

 -

 

 

 -

 

 
2,834 

Star Asia Special Situations Fund (3)

 
2,503 

 

 

 -

 

 

 -

 

 
2,503 

Other equity securities

 
431 

 

 
24 

 

 
407 

 

 

 -

Interests in securitizations (1)

 
77 

 

 

 -

 

 

 -

 

 
77 

Residential loans

 
255 

 

 

 -

 

 
255 

 

 

 -

Total other investments, at fair value

$
38,323 

 

$
24 

 

$
662 

 

$
37,637 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Trading securities sold, not yet purchased:

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency MBS

$
13 

 

$

 -

 

$
13 

 

$

 -

U.S. Treasury securities

 
19,722 

 

 
19,722 

 

 

 -

 

 

 -

Corporate bonds and redeemable preferred stock

 
21,976 

 

 
152 

 

 
21,824 

 

 

 -

Municipal bonds

 
128 

 

 

 -

 

 
128 

 

 

 -

Certificates of deposit

 
2,325 

 

 

 -

 

 
2,325 

 

 

 -

Equity securities

 
3 

 

 
3 

 

 

 -

 

 

 -

Total trading securities sold, not yet purchased

$
44,167 

 

$
19,877 

 

$
24,290 

 

$

 -

 

(1)Primarily comprised of CDOs, CLOs, and ABS.

(2)Hybrid Securities Fund—European.

(3)Real Estate Fund—Asian.

(4)Diversified Fund.

Schedule Of Assets And Liabilities Measured With Level 3 Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LEVEL 3 INPUTS

Nine Months Ended September 30, 2013

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

Net trading

 

Principal transactions and other income

 

Transfers out of Level 3

 

Purchases

 

Sales

 

September 30, 2013

 

Change in unrealized gains /(losses) for the period included in earnings  (1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments-trading

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interests in securitizations (2)

 

$
295 

 

$
62 

 

$

 -

 

$

 -

 

$

 -

 

$
(153)

 

$
204 

 

$
(92)

SBA loans

 

 

 -

 

 
239 

 

 

 -

 

 

 -

 

 
37 

 

 

 -

 

 
276 

 

 
239 

Total investments-trading

 

$
295 

 

$
301 

 

$

 -

 

$

 -

 

$
37 

 

$
(153)

 

$
480 

 

$
147 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (3)

 

$
2,054 

 

$

 -

 

$
221 

 

$

 -

 

$

 -

 

$

 -

 

$
2,275 

 

$
221 

Star Asia (4)

 

 
30,169 

 

 

 -

 

 
(9,051)

 

 

 -

 

 

 -

 

 

 -

 

 
21,118 

 

 
(9,051)

Tiptree (5)

 

 
2,834 

 

 

 -

 

 

 -

 

 
(2,834)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Star Asia Japan Special Situations Fund (4)

 

 
2,503 

 

 

 -

 

 
577 

 

 

 -

 

 
302 

 

 
(179)

 

 
3,203 

 

 
577 

Total equity securities

 

 
37,560 

 

 

 -

 

 
(8,253)

 

 
(2,834)

 

 
302 

 

 
(179)

 

 
26,596 

 

 
(8,253)

Interest in securitizations (2)

 

 
77 

 

 

 -

 

 
(40)

 

 

 -

 

 

 -

 

 

 -

 

 
37 

 

 
(40)

Total other investments, fair value

 

$
37,637 

 

$

 -

 

$
(8,293)

 

$
(2,834)

 

$
302 

 

$
(179)

 

$
26,633 

 

$
(8,293)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period.

(2)Primarily comprised of CDOs, CLOs, and ABS.

(3)Hybrid Securities Funds—European.

(4)Real Estate Funds—Asian.

(5)Diversified Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LEVEL 3 INPUTS

Nine Months Ended September 30, 2012

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

Net trading

 

 

Principal transactions and other income

 

 

Transfers out of Level 3

 

 

Purchases

 

 

Sales

 

 

September 30, 2012

 

Change in unrealized gains /(losses) for the period included in earnings  (1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments-trading

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RMBS

 

$
4,932 

 

$
17 

 

$

 -

 

$

 -

 

$
171 

 

$
(5,120)

 

$

 -

 

$

 -

Interests in securitizations (2)

 

 
221 

 

 
53 

 

 

 -

 

 

 -

 

 
2,861 

 

 
(2,203)

 

 
932 

 

 
74 

Equity securities

 

 
35 

 

 
(104)

 

 

 -

 

 

 -

 

 
126 

 

 

 -

 

 
57 

 

 
(104)

Total investments-trading

 

$
5,188 

 

$
(34)

 

$

 -

 

$

 -

 

$
3,158 

 

$
(7,323)

 

$
989 

 

$
(30)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (3)

 

$
2,370 

 

$

 -

 

$
1 

 

$

 -

 

$

 -

 

$

 -

 

$
2,371 

 

$
1 

Star Asia (4)

 

 
37,358 

 

 

 -

 

 
(3,433)

 

 

 -

 

 

 -

 

 

 -

 

 
33,925 

 

 
(3,433)

Tiptree (5)

 

 
2,533 

 

 

 -

 

 
222 

 

 

 -

 

 

 -

 

 

 -

 

 
2,755 

 

 
222 

Other

 

 
132 

 

 

 -

 

 
(41)

 

 

 -

 

 

 -

 

 

 -

 

 
91 

 

 
(41)

Total equity securities

 

 
42,393 

 

 

 -

 

 
(3,251)

 

 

 -

 

 

 -

 

 

 -

 

 
39,142 

 

 
(3,251)

Interest in securitizations (2)

 

 
88 

 

 

 -

 

 
6 

 

 

 -

 

 

 -

 

 

 -

 

 
94 

 

 
6 

Residential loans

 

 
267 

 

 

 -

 

 

 -

 

 
(267)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Total other investments, fair value

 

$
42,748 

 

$

 -

 

$
(3,245)

 

$
(267)

 

$

 -

 

$

 -

 

$
39,236 

 

$
(3,245)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. 

(2)Primarily comprised of CDOs, CLOs, and ABS.

(3)Hybrid Securities Funds—European.

(4)Real Estate Funds—Asian.

(5)Diversified Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LEVEL 3 INPUTS

Three Months Ended September 30, 2013

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

 

 

Net trading

 

 

Principal transactions and other income

 

 

Transfers out of Level 3

 

 

Purchases

 

 

Sales

 

 

September 30, 2013

 

Change in unrealized gains /(losses) for the period included in earnings  (1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments-trading

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interests in securitizations (2)

 

$
221 

 

$
26 

 

$

 -

 

$

 -

 

$

 -

 

$
(43)

 

$
204 

 

$
(18)

SBA loans

 

 

 -

 

 
239 

 

 

 -

 

 

 -

 

 
37 

 

 

 -

 

 
276 

 

 
239 

Total investments-trading

 

$
221 

 

$
265 

 

$

 -

 

$

 -

 

$
37 

 

$
(43)

 

$
480 

 

$
221 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (3)

 

$
2,040 

 

$

 -

 

$
235 

 

$

 -

 

$

 -

 

$

 -

 

$
2,275 

 

$
235 

Star Asia (4)

 

 
20,935 

 

 

 -

 

 
183 

 

 

 -

 

 

 -

 

 

 -

 

 
21,118 

 

 
183 

Star Asia Japan Special Situations Fund (4)

 

 
2,775 

 

 

 -

 

 
607 

 

 

 -

 

 

 -

 

 
(179)

 

 
3,203 

 

 
607 

Total equity securities

 

 
25,750 

 

 

 -

 

 
1,025 

 

 

 -

 

 

 -

 

 
(179)

 

 
26,596 

 

 
1,025 

Interest in securitizations (2)

 

 
58 

 

 

 -

 

 
(21)

 

 

 -

 

 

 -

 

 

 -

 

 
37 

 

 
(21)

Total other investments, fair value

 

$
25,808 

 

$

 -

 

$
1,004 

 

$

 -

 

$

 -

 

$
(179)

 

$
26,633 

 

$
1,004 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period.

(2)Primarily comprised of CDOs, CLOs, and ABS.

(3)Hybrid Securities Funds—European.

(4)Real Estate Funds—Asian.

(5)Diversified Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LEVEL 3 INPUTS

Three Months Ended September 30, 2012

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2012

 

 

Net trading

 

 

Principal transactions and other income

 

 

Transfers out of Level 3

 

 

Purchases

 

 

Sales

 

 

September 30, 2012

 

Change in unrealized gains /(losses) for the period included in earnings  (1)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments-trading

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interests in securitizations (2)

 

$
185 

 

$
111 

 

$

 -

 

$

 -

 

$
636 

 

$

 -

 

$
932 

 

$
111 

Equity securities

 

 
63 

 

 
(6)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
57 

 

 
(6)

Total investments-trading

 

$
248 

 

$
105 

 

$

 -

 

$

 -

 

$
636 

 

$

 -

 

$
989 

 

$
105 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (3)

 

$
2,103 

 

$

 -

 

$
268 

 

$

 -

 

$

 -

 

$

 -

 

$
2,371 

 

$
268 

Star Asia (4)

 

 
32,299 

 

 

 -

 

 
1,626 

 

 

 -

 

 

 -

 

 

 -

 

 
33,925 

 

 
1,626 

Tiptree (5)

 

 
2,703 

 

 

 -

 

 
52 

 

 

 -

 

 

 -

 

 

 -

 

 
2,755 

 

 
52 

Other

 

 
88 

 

 

 -

 

 
3 

 

 

 -

 

 

 -

 

 

 -

 

 
91 

 

 
3 

Total equity securities

 

 
37,193 

 

 

 -

 

 
1,949 

 

 

 -

 

 

 -

 

 

 -

 

 
39,142 

 

 
1,949 

Interest in securitizations (2)

 

 
97 

 

 

 -

 

 
(3)

 

 

 -

 

 

 -

 

 

 -

 

 
94 

 

 
(3)

Total other investments, fair value

 

$
37,290 

 

$

 -

 

$
1,946 

 

$

 -

 

$

 -

 

$

 -

 

$
39,236 

 

$
1,946 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period.

(2)Primarily comprised of CDOs, CLOs, and ABS.

(3)Hybrid Securities Funds—European.

(4)Real Estate Funds—Asian.

(5)Diversified Fund.

Quantitative Information About Level 3 Fair Value Measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

Range of

 

 

 

Fair Value

 

 

Valuation

 

 

Unobservable

 

 

Weighted

 

 

Significant

 

 

 

September 30, 2013

 

 

Technique

 

 

Inputs

 

 

Average

 

 

Inputs

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Star Asia

 

$
21,118 

 

 

Adjusted NAV

 

 

Discount rate

 

 
7.26% 

 

 
7.26% 

 

 

 

 

 

 

 

 

 

on debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

Range of

 

 

 

Fair Value

 

 

Valuation

 

 

Unobservable

 

 

Weighted

 

 

Significant

 

 

 

December 31, 2012

 

 

Technique

 

 

Inputs

 

 

Average

 

 

Inputs

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Star Asia

 

$
30,169 

 

 

Adjusted NAV

 

 

Discount rate

 

 
6.82% 

 

 
6.82% 

 

 

 

 

 

 

 

 

 

on debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value, Investments, Entities That Calculate Net Asset Value Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAIR VALUE MEASUREMENTS OF INVESTMENTS IN CERTAIN ENTITIES

THAT CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

Unfunded Commitments

 

 

Redemption Frequency

 

 

Redemption Notice Period

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (a)

 

$
2,275 

 

 

N/A

 

 

N/A

 

 

N/A

Star Asia (b)

 

 
21,118 

 

 

N/A

 

 

N/A

 

 

N/A

Tiptree (c)

 

 
2,317 

 

 

N/A

 

 

N/A

 

 

N/A

Star Asia Special Situations Fund (d)

 

 
3,203 

 

 

N/A

 

 

N/A

 

 

N/A

 

 

$
28,913 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

Unfunded Commitments

 

 

Redemption Frequency

 

 

Redemption Notice Period

Other investments, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

EuroDekania (a)

 

$
2,054 

 

 

N/A

 

 

N/A

 

 

N/A

Star Asia (b)

 

 
30,169 

 

 

N/A

 

 

N/A

 

 

N/A

Tiptree (c)

 

 
2,834 

 

 

N/A

 

 

N/A

 

 

N/A

Star Asia Special Situations Fund (d)

 

 
2,503 

 

$

321

 

 

N/A

 

 

N/A

 

 

$
37,560 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/A – Not applicable.

(a)EuroDekania’s investment strategy is to make investments in hybrid capital securities that have attributes of debt and equity, primarily in the form of subordinated debt issued by insurance companies, banks and bank holding companies based primarily in Western Europe; widely syndicated leveraged loans issued by European corporations; CMBS, including subordinated interests in first mortgage real estate loans; and RMBS and other ABS backed by consumer and commercial receivables. The majority of the assets are denominated in Euros and U.K. Pounds Sterling. The fair value of the investment in this category has been estimated using the net asset value per share of the investment in accordance with the “practical expedient” provisions of FASB ASC 820.

(b)Star Asia’s investment strategy is to make investments in Asian real estate structured finance investments, including CMBS, corporate debt of REITs and real estate operating companies, whole loans, mezzanine loans, and other commercial real estate fixed income investments. The fair value of the investment in this category has been estimated using an internal valuation model that uses a market approach. If the Company had used Star Asia’s unadjusted reported net asset value to determine its fair value, the carrying value of its investment in Star Asia would have been $31,907 as of September 30, 2013 and $39,998 as of December 31, 2012.  

(c)The investment strategy of Tiptree is focused on investing in (a) specialty finance companies; (b) alternative asset management companies; and (c) diversified credit assets and related equity interests. Tiptree primarily seeks to acquire majority ownership interests in its investees. Prior to June 30, 2013, the fair value of this investment had been estimated using the net asset value per share of the investment in accordance with the “practical expedient” provisions of FASB ASC 820. Beginning with the second quarter of 2013, the Company calculates the fair value of its investment in Tiptree by using the closing over the counter price for Tiptree Financial, Inc. and adjusting for the exchange ratio.  As of September 30, 2013 and December 31, 2012, the Company owned approximately 1% of Tiptree.  

 

(d)    The Star Asia Special Situations Fund’s investment strategy is to make investments in real estate and securities backed by real estate in Japan. The Star Asia Special Situations Fund is a closed end fund that does not allow investor redemptions. It has an initial life of three years which can be extended under certain circumstances for up to two years. The fair value of the investment in this category has been estimated using the net asset value per share of the investment in accordance with the “practical expedient” provisions of FASB ASC 820. The Company’s unfunded commitment was denominated in Japanese Yen and fluctuated based on the foreign exchange spot rate used at any particular period. See note 20.