This was good to read again from the CC transcript:

"Of note, we currently have in excess of $50 million in investable cash comprised of approximately $33 million and approximately $17 million in our bank loans and real estate deals respectively."

Money to be put to work feeding the 'cash flow' machine as they call it. I don't quite get the 'filing cabinet' analogy some disparagingly hurl at this company - If you listen to the cc it's obvious there is a team of FULL TIME folks minding the various loan books and investment portfolios here. There is an attention to detail I really appreciate in their servicing and maintaining of loans. A shame bigger banks and lenders didn't have this vigilance. They would just lend and sell off as quickly as they could.

Also, the subject of growth doesn't seem like such a nonstarter as some critics would suggest from the cc. Here, the size of the portfolio (relatively SMALL) works in our favor as unique interest rate, and spread swaps can be done to enhance both BOOK VALUE and CASH FLOW. It's akin to a mutual fund that can get too BIG for it's own good. RSO is more like a small cap fund, with a fixed amount of assets that can be rolled and invested nimbly. Bigger MREITs need to make much bigger bets to move the needle- just my 2 cents, but this is the sense I get from re-reading the cc.

I was also pleased to hear a sense of confidence in the eventual changes in LIBOR and interest rate spreads i.e. anticipating a way to make rising LIBOR work to our favor:

"Meanwhile, we borrow at a floating rate basis for the most part and lend at a floating rating basis for the most part. This has allowed us to keep our net interest income fairly flat and permitted us to wait for rising LIBOR, which will eventually come, which will allow our net interest income to grow"

And this quote:
"We believe we can achieve equity like returns and do so with safety."

This means the goal is to grow the book value organically - and (hopefully) protecting and enhancing the income stream.