Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE - Securities Valuation Methodology (Details 5)

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FAIR VALUE - Securities Valuation Methodology (Details 5) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Outstanding Face Amount $ 532,730 [1],[2]  
Amortized Cost Basis 354,361 [3]  
Multiple Quotes Fair Value (C) 336,110 [4]  
Single Quote Fair Value (D) 99,635 [5]  
Internal Pricing Models Fair Value (E) 3,278 [6]  
Total Fair Value 439,023 984,263
CMBS [Member]
    
Outstanding Face Amount 330,213 [2]  
Amortized Cost Basis 229,887 [3]  
Multiple Quotes Fair Value (C) 243,629 [4]  
Single Quote Fair Value (D) 42,712 [5]  
Total Fair Value 286,341  
REIT Debt [Member]
    
Outstanding Face Amount 29,200 [2]  
Amortized Cost Basis 28,729 [3]  
Multiple Quotes Fair Value (C) 30,957 [4]  
Total Fair Value 30,957 [7]  
Non-Agency RMBS [Member]
    
Outstanding Face Amount 93,221 [2]  
Amortized Cost Basis 39,894 [3]  
Multiple Quotes Fair Value (C) 61,524 [4]  
Total Fair Value 61,524 [7]  
ABS Franchise [Member]
    
Outstanding Face Amount 8,464 [2]  
CDOs [Member]
    
Outstanding Face Amount 71,632 [2],[8],[9]  
Amortized Cost Basis 55,851 [3],[8],[9]  
Single Quote Fair Value (D) 56,923 [5],[8]  
Internal Pricing Models Fair Value (E) 3,278 [6],[8],[9]  
Total Fair Value $ 60,201 [7],[8],[9]  
[1] The total outstanding face amount was $340.6 million for fixed rate securities and $192.1 million for floating rate securities.
[2] Net of incurred losses.
[3] Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended March 31, 2014.
[4] Management generally obtained pricing service quotations or broker quotations from at least two sources, one of which was generally the seller (the party that sold us the security). Management selected one of the quotes received as being most representative of fair value and did not use an average of the quotes. Even if Newcastle receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes Newcastle receives. Management believes using an average of the quotes in these cases would generally not represent the fair value of the asset. Based on Newcastle's own fair value analysis using internal models, management selects one of the quotes which are believed to more accurately reflect fair value. Newcastle never adjusts quotes received.
[5] Management was unable to obtain quotations from more than one source on these securities. The one source was generally the seller (the party that sold us the security) or a pricing service.
[6] Securities whose fair value was estimated based on internal pricing models are further detailed as follows (See Schedule of securities valued based on internal pricing models)
[7] See Note 12 regarding the estimation of fair value, which is equal to carrying value for all securities.
[8] Represents non-consolidated CDO securities, excluding nine securities with a zero value, which had an aggregate face amount of $115.3 million.
[9] Represents non consolidated CDO securities, excluding nine securities with a zero value, which had an aggregate face amount of $115.3 million.