During the fourth quarter, we took the opportunity to sell two large subordinate loan legacy positions, continuing our reducing exposure to those bonds of the financial crisis. Although we believed that these loans would be collectable, they were subordinated to much larger loans and exposed as to potential binary risk. So we considered it prudent to pay back such positions and focus our capital on new investments.In viewing though, we took a loss of $14 million, but maintained a book value within 1% of where it was last quarter. We also added general reserves of $2 million and have approximately $11 million balance in general reserve at yearend. Dave Bryant, will comment more about this, as we move forward from here. But in general loan credit, we see a stable and improving situation.
Resource Capital CEO Discusses Q4 2010 Results - Earnings Call Transcript
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