As of June 30, 2010, Newcastle’s $4.8 billion investment portfolio consisted primarily of $3.2 billion, $0.9 billion and $0.7 billion of commercial, residential and corporate debt, respectively.

			Face Amount $	Basis Amount $ (1)	% of Total Basis	Number of Investments	Credit (2)	W.A. Life (years) (3)
Commercial Assets
	CMBS		$2,092	$1,345	44.1%	272	BB	2.9
	Mezzanine Loans		716	314	10.3%	20	71%	2.1
	B-Notes		284	125	4.1%	10	77%	2.0
	Whole Loans		85	50	1.6%	4	84%	4.0
	Total Commercial Assets		3,177	1,834	60.1%			2.7
Residential Assets
	MH and Residential Loans		454	387	12.7%	11,926	699	6.6
	Subprime Securities		395	174	5.7%	89	B-	4.4
	Real Estate ABS		81	58	1.9%	22	BB	4.7
			930	619	20.3%			5.5
	FNMA/FHLMC Securities		4	4	0.1%	1	AAA	3.5
	Total Residential Assets		934	623	20.4%			5.5
Corporate Assets
	REIT Debt		390	389	12.8%	46	BB+	3.5
	Corporate Bank Loans		306	206	6.7%	9	C	3.6
	Total Corporate Assets		696	595	19.5%			3.6
Total/Weighted Average (4)			$4,807	$3,052	100.0%			3.3

(1)	Net of impairment.
(2)	Credit represents the weighted average of minimum ratings for rated assets, the Loan to Value ratio (based on the appraised value at the time of purchase) for non-rated commercial assets, or the FICO score for non-rated residential assets and an implied AAA rating for FNMA/FHLMC securities. Ratings provided above were determined by third party rating agencies as of a particular date, may not be current and are subject to change (including a “negative watch” assignment) at any time.
(3)	Weighted average life is based on the timing of expected principal reduction on the asset.
(4)	Excludes CDO securities of $80 million (which was included in the prior quarter), operating real estate held for sale of $10 million and loans subject to call option with a face amount of $406 million.