XML 37 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Non Recourse Collateralized Financings
 12 Months Ended
Dec. 31, 2011
NON RECOURSE COLLATERIZED FINANCING [Abstract]  
Non-Recourse Collateralized Financing
NON-RECOURSE COLLATERIZED FINANCING
 
The following table summarizes information about the Company’s non-recourse collateralized financing for the periods indicated:
 
 
December 31, 2011
 
 
Interest Rate
 
Weighted Average
Life Remaining
(in years)
 
Balance Outstanding
 
Value of
Collateral
Securitization financing:
 
 
 
 
 
 
 
Secured by non-Agency CMBS
6.2% fixed
 
2.1
 
$
15,000

 
$
16,388

Secured by single-family mortgage loans
1-month LIBOR
plus 0.30%
 
3.2
 
18,928

 
19,843

TALF financing:(1)
 
 
 
 
 

 
 

Secured by non-Agency CMBS
2.7% fixed
 
1.2
 
37,672

 
49,087

Unamortized net bond premium and deferred costs
 
 
 
 
(705
)
 
n/a

 
 
 
 
 
$
70,895

 
$
85,318

 
 
December 31, 2010
 
 
Interest Rate
 
Weighted Average
Life Remaining
(in years)
 
Balance Outstanding
 
Value of
Collateral
Securitization financing:
 
 
 
 
 
 
 
Secured by commercial mortgage loans
7.2% fixed
 
3.7
 
$
23,669

 
$
43,440

Secured by non-Agency CMBS
6.2% fixed
 
3.4
 
15,000

 
16,754

Secured by single-family mortgage loans
1-month LIBOR plus 0.30%
 
3.4
 
21,183

 
21,889

TALF financing:(1)
 
 
 
 
 
 
 
Secured by non-Agency CMBS
2.7% fixed
 
2.2
 
50,713

 
64,097

Unamortized net bond premium and deferred costs
 
 
 
 
(3,460
)
 
n/a

 
 
 
 
 
$
107,105

 
$
146,180

(1)
Financing provided by the Federal Reserve Bank of New York under its Term Asset-Backed Securities Loan Facility (“TALF”).
 
The Company has redeemed securitization bonds in the past, and in certain instances, the Company has kept the bond outstanding and used it as collateral for additional repurchase agreement borrowings. These additional borrowings may have been used to either finance the bond redemption or to purchase additional investments.  Although these bonds are legally outstanding, the balances are eliminated in consolidation because the issuing trust is included in the Company’s consolidated financial statements. In the third quarter of 2011, the Company redeemed $23,669 of its non-recourse collateralized financing. This redemption consisted of a portion of our securitization financing bond issued in 1998 with commercial mortgage loans as collateral. The Company replaced this financing, which had a coupon rate of 7.16% at the time of redemption, with lower cost repurchase agreement financing (with terms which are subject to change).

The following table summarizes information regarding all of the Company’s redeemed bonds that have an outstanding balance as of December 31, 2011:
 
 
December 31, 2011
Collateral Type
Par Value
Outstanding
 
Fair Value
 
Repurchase
 Agreement Balance
Single-family mortgage loans
$
21,477

 
$
18,616

 
$
16,980

Commercial mortgage loans
49,220

 
49,256

 
43,482

 
$
70,697

 
$
67,872

 
$
60,462