Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE - Fair Value of Assets and Liabilities (Details)

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FAIR VALUE - Fair Value of Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Financial Instruments      
Real estate securities, available-for-sale $ 825,499 [1],[2] $ 1,691,575  
Real estate related loans, held-for-sale, net 795,297 843,132  
Residential mortgage loans, held-for-investment, net 260,463 292,461  
Residential mortgage loans, held-for-sale, net 2,236 2,471  
Subprime mortgage loans subject to call option 406,217 405,814  
Restricted Cash 1,827 2,064  
Cash and Cash Equivalents 92,134 231,898 229,036
Non-hedge derivative assets 43,172 165  
Equity method investments in Local Media Group 57,384     
Other investments 25,133 24,907  
Receivables and other assets 27,003 17,197  
Total Assets 2,986,777 3,945,312  
Financial Instruments      
CDO bonds payable 718,473 1,091,354  
Other bonds and notes payable 153,798 183,390  
Repurchase agreements 376,886 929,435  
Mortgage notes payable 335,238 120,525  
Financing of subprime mortgage loans subject to call option (B) 406,217 405,814  
Junior subordinated notes payable 51,239 51,243  
Due to affiliates 4,911 3,620  
Total Liabilities 2,121,802 2,872,252  
Total Mortgage Notes Payable
      
Weighted Average      
Weighted Average Yield/Funding Cost 4.58%    
Weighted Average Maturity (Years) 4 years 10 months 24 days    
Junior Subordinated Debt
      
Weighted Average      
Weighted Average Yield/Funding Cost 7.39%    
Weighted Average Maturity (Years) 21 years 7 months 6 days    
CDO Bonds Payable
      
Weighted Average      
Weighted Average Yield/Funding Cost 2.03% [3]    
Weighted Average Maturity (Years) 1 year 7 months 6 days [3]    
Other Bonds and Notes Payable
      
Weighted Average      
Weighted Average Yield/Funding Cost 5.27% [3]    
Weighted Average Maturity (Years) 3 years 10 months 24 days [3]    
Repurchase Agreements
      
Weighted Average      
Weighted Average Yield/Funding Cost 0.36%    
Weighted Average Maturity (Years) 0 years 1 month 6 days    
Financing on Subprime Mortgage Loans subject to Call Options
      
Weighted Average      
Weighted Average Yield/Funding Cost 9.09% [4]    
Weighted Average Maturity (Years) (B) [4]    
Interest Rate Swap Agreements
      
Weighted Average      
Weighted Average Yield/Funding Cost N/A [5],[6],[7]    
Weighted Average Maturity (Years) (E) [5],[6],[7]    
Non Hedge Derivative Liabilities
      
Weighted Average      
Weighted Average Yield/Funding Cost N/A [4],[5],[6]    
Weighted Average Maturity (Years) (C) [4],[5],[6]    
Real Estate Related and Other Loans Held For Sale
      
Weighted Average      
Weighted Average Yield/Funding Cost 11.97%    
Weighted Average Maturity (Years) 1 year 3 months 18 days    
Residential Mortgage Loans Held For Investment
      
Weighted Average      
Weighted Average Yield/Funding Cost 8.33%    
Weighted Average Maturity (Years) 5 years 6 months    
Residential Mortgage Loans Held For Sale
      
Weighted Average      
Weighted Average Yield/Funding Cost 19.71%    
Weighted Average Maturity (Years) 4 years 6 months    
Subprime Mortgage Loans Subject to Call
      
Weighted Average      
Weighted Average Yield/Funding Cost 9.09% [8]    
Weighted Average Maturity (Years) (B) [8]    
Real Estate Securities Available For Sale
      
Weighted Average      
Weighted Average Yield/Funding Cost 5.64% [5]    
Weighted Average Maturity (Years) 3 years 1 month 6 days [5]    
Derivative Financial Instruments, Assets
      
Weighted Average      
Weighted Average Yield/Funding Cost N/A [4],[6]    
Weighted Average Maturity (Years) (C) [4],[6]    
Measured on a Recurring Basis | Principal Balance
      
Financial Instruments      
Real estate securities, available-for-sale 1,038,815 [5]    
Real estate related loans, held-for-sale, net 1,353,531    
Residential mortgage loans, held-for-investment, net 288,059    
Residential mortgage loans, held-for-sale, net 3,238    
Subprime mortgage loans subject to call option 406,217 [8]    
Restricted Cash 1,827 [5]    
Cash and Cash Equivalents 92,134 [5]    
Non-hedge derivative assets 116,806 [4],[5],[6]    
Financial Instruments      
CDO bonds payable 717,508 [3]    
Other bonds and notes payable 157,663 [3]    
Repurchase agreements 376,886    
Mortgage notes payable 338,954    
Financing of subprime mortgage loans subject to call option (B) 406,217 [8]    
Junior subordinated notes payable 51,004    
Interest rate swaps, treated as hedges 105,393 [5],[6],[7]    
Non-hedge derivatives 186,008 [4],[5],[6]    
Measured on a Recurring Basis | Carrying Amount
      
Financial Instruments      
Real estate securities, available-for-sale 825,499 [5]    
Real estate related loans, held-for-sale, net 795,297    
Residential mortgage loans, held-for-investment, net 260,463    
Residential mortgage loans, held-for-sale, net 2,236    
Subprime mortgage loans subject to call option 406,217 [8]    
Restricted Cash 1,827 [5]    
Cash and Cash Equivalents 92,134 [5]    
Non-hedge derivative assets 43,172 [4],[5],[6]    
Investments in real estate and intangibles, net 450,412    
Equity method investments in Local Media Group 57,384    
Other investments 25,133    
Receivables and other assets 27,003    
Total Assets 2,986,777    
Financial Instruments      
CDO bonds payable 718,473 [3]    
Other bonds and notes payable 153,798 [3]    
Repurchase agreements 376,886    
Mortgage notes payable 335,238    
Financing of subprime mortgage loans subject to call option (B) 406,217 [8]    
Junior subordinated notes payable 51,239    
Interest rate swaps, treated as hedges 7,416 [5],[6],[7]    
Non-hedge derivatives 9,699 [4],[5],[6]    
Due to affiliates 4,911    
Dividends payable, accrued expenses and other liabilities 57,925    
Total Liabilities 2,121,802    
Measured on a Recurring Basis | Total Fair Value
      
Financial Instruments      
Real estate securities, available-for-sale 825,499 [5]    
Real estate related loans, held-for-sale, net 808,151    
Residential mortgage loans, held-for-investment, net 261,994    
Residential mortgage loans, held-for-sale, net 2,236    
Subprime mortgage loans subject to call option 406,217 [8]    
Restricted Cash 1,827 [5]    
Cash and Cash Equivalents 92,134 [5]    
Non-hedge derivative assets 43,172 [4],[5],[6]    
Financial Instruments      
CDO bonds payable 568,186 [3]    
Other bonds and notes payable 157,916 [3]    
Repurchase agreements 376,886    
Mortgage notes payable 335,238    
Financing of subprime mortgage loans subject to call option (B) 406,217 [8]    
Junior subordinated notes payable 34,385    
Interest rate swaps, treated as hedges 7,416 [5],[6],[7]    
Non-hedge derivatives $ 9,699 [4],[5],[6]    
[1] (A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2] (G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3] (F) Newcastle notes that the unrealized gain on the liabilities within CDOs and other non-recourse financing structures cannot be fully realized. Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle's exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. As a result, the fair value of Newcastle's net investments in these nonrecourse financing structures is equal to the present value of their expected future net cash flows.
[4] (C) This represents one interest rate swap agreement with a total notional balance of $186.0 million, maturing in March 2015 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI. These derivative agreements were not designated as hedges for accounting purposes as of September 30, 2013.
[5] *Measured at fair value on a recurring basis.
[6] (D) Newcastle's derivatives fall into two categories. As of September 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle's nonrecourse structures. An aggregate notional balance of $291.4 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs' total investments exceeded the fair value of each of the CDOs' derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $116.8 million, represent linked transactions with $116.8 face amount of underlying financed securities. Newcastle's interest rate swap counterparties include Bank of America and Credit Suisse.
[7] (E) Represents derivative agreements (See Schedule of Fair Value Of Derivative Assets).
[8] (B) These two items result from an option, not an obligation, to repurchase loans from Newcastle's subprime mortgage loan securitizations (Note 6), are noneconomic until such option is exercised, and are equal and offsetting.