REAL ESTATE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Summary of securities which are classified as available-for-sale

The following is a summary of the Company’s securities at December 31, 2015 and 2014 ($ in thousands):

December 31, 2015

						Gross Unrealized								Weighted Average
Asset Type	Outstanding Face Amount			Amortized Cost Basis		Gains		Losses			Carrying Value		# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)
CMBS(2)	$	1,972,492		$	1,994,928	$	4,643	$	(8,065	)	$	1,991,506	119	AAA	3.17	%	2.59	%	3.15
CMBS interest-only(2)	7,436,379		(3)	348,222		1,027		(4,826		)	344,423		48	AAA	1.02	%	3.81	%	3.34
GNMA interest-only(4)	632,175		(3)	28,311		44		(2,161		)	26,194		20	AA+	0.80	%	4.26	%	5.22
GN construction securities(2)	27,091			27,581		1,058		—			28,639		1	AA+	4.10	%	3.86	%	9.33
GN permanent securities(2)	16,249			16,685		164		(394		)	16,455		12	AA+	4.52	%	3.94	%	5.43
Total	$	10,084,386		$	2,415,727	$	6,936	$	(15,446	)	$	2,407,217	200		1.44	%	3.60	%	3.29

December 31, 2014

						Gross Unrealized								Weighted Average
Asset Type	Outstanding Face Amount			Amortized Cost Basis		Gains		Losses			Carrying Value		# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)
CMBS(2)	$	2,247,565		$	2,277,995	$	28,453	$	(1,038	)	$	2,305,410	145	AAA	3.31	%	2.60	%	4.23
CMBS interest-only(2)	7,239,503		(3)	376,085		2,973		(723		)	378,335		41	AAA	1.04	%	4.88	%	3.45
GNMA interest-only(4)	1,400,141		(3)	67,544		1,035		(1,937		)	66,642		34	AA+	0.85	%	5.90	%	4.50
GN construction securities(2)	27,538			28,178		503		(275		)	28,406		4	AA+	3.89	%	3.56	%	9.42
GN permanent securities(2)	36,232			36,515		258		—			36,773		11	AA+	5.49	%	4.94	%	1.32
Total	$	10,950,979		$	2,786,317	$	33,222	$	(3,973	)	$	2,815,566	235		1.50	%	4.54	%	4.15

(1) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating.  For each security rated by multiple rating agencies, the highest rating is used.  Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time.

(2) CMBS, CMBS interest-only securities, GN construction securities, and GN permanent securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.

(3) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.

(4) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in earnings in the combined consolidated statements of income in accordance with ASC 815.

Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows

The following is a breakdown of the carrying value of the Company’s securities by remaining maturity based upon expected cash flows at December 31, 2015 and 2014 ($ in thousands):

December 31, 2015

Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total
CMBS(1)	$	610,526	$	891,752	$	489,228	$	—	$	1,991,506
CMBS interest-only(1)	—		344,423		—		—		344,423
GNMA interest-only(2)	6		17,159		8,549		480		26,194
GN construction securities(1)	—		386		28,253		—		28,639
GN permanent securities(1)	2,220		6,661		7,574		—		16,455
Total	$	612,752	$	1,260,381	$	533,604	$	480	$	2,407,217

December 31, 2014

Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total
CMBS(1)	$	474,357	$	814,702	$	1,016,351	$	—	$	2,305,410
CMBS interest-only(1)	391		370,993		6,951		—		378,335
GNMA interest-only(2)	1,356		42,105		23,181		—		66,642
GN construction securities(1)	—		507		5,183		22,716		28,406
GN permanent securities(1)	25,915		9,334		1,524		—		36,773
Total	$	502,019	$	1,237,641	$	1,053,190	$	22,716	$	2,815,566

(1) CMBS, CMBS interest-only securities, GN construction securities, and GN permanent securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.

(2) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.