Outstanding Exposure (Tables)

6 Months Ended

Jun. 30, 2011

Outstanding Exposure

Schedule of Debt Service Outstanding

Debt Service Outstanding

		Gross Debt Service Outstanding				Net Debt Service Outstanding
		June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010
		(in millions)
Public finance		$	826,907	$	851,634	$	739,493	$	760,167
Structured finance			157,646		178,348		147,275		166,976
	Total	$	984,553	$	1,029,982	$	886,768	$	927,143

Schedule of Financial Guaranty Net Par Outstanding by Internal Rating.

		As of June 30, 2011
		Public Finance U.S.					Public Finance Non-U.S.					Structured Finance U.S					Structured Finance Non-U.S					Total
Rating Category		Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%
		(dollars in millions)
Super senior		$	—		—	%	$	1,507		3.7	%	$	19,957		19.2	%	$	7,683		26.8	%	$	29,147		5.0	%
AAA			5,078		1.2			1,379		3.3			38,175		36.7			12,722		44.3			57,354		9.8
AA			151,571		36.7			1,145		2.8			14,236		13.7			1,606		5.6			168,558		28.7
A			211,736		51.2			12,517		30.4			5,721		5.5			1,610		5.6			231,584		39.4
BBB			41,939		10.2			22,318		54.1			5,248		5.0			3,273		11.3			72,778		12.4
BIG			2,950		0.7			2,360		5.7			20,641		19.9			1,824		6.4			27,775		4.7
	Total net par outstanding	$	413,274		100.0	%	$	41,226		100.0	%	$	103,978		100.0	%	$	28,718		100.0	%	$	587,196		100.0	%

		As of December 31, 2010
		Public Finance U.S.					Public Finance Non-U.S.					Structured Finance U.S					Structured Finance Non-U.S					Total
Rating Category		Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%			Net Par Outstanding		%
		(dollars in millions)
Super senior		$	—		—	%	$	1,420		3.5	%	$	21,837		18.4	%	$	7,882		25.7	%	$	31,139		5.0	%
AAA			5,784		1.4			1,378		3.4			45,067		37.9			13,573		44.3			65,802		10.7
AA			161,906		37.9			1,330		3.3			17,355		14.6			1,969		6.4			182,560		29.6
A			214,199		50.2			12,482		30.6			6,396		5.4			1,873		6.1			234,950		38.1
BBB			41,948		9.8			22,338		54.8			7,543		6.4			4,045		13.2			75,874		12.3
BIG			3,159		0.7			1,795		4.4			20,558		17.3			1,294		4.3			26,806		4.3
	Total net par outstanding	$	426,996		100.0	%	$	40,743		100.0	%	$	118,756		100.0	%	$	30,636		100.0	%	$	617,131		100.0	%

Financial Guaranty Exposures (Insurance and Credit Derivative Form)

				June 30, 2011
				BIG Net Par Outstanding
												Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				BIG 1		BIG 2		BIG 3		Total BIG
				(in millions)
First lien U.S. RMBS:
	Prime first lien			$	26	$	582	$	—	$	608	$	786		0.1	%
	Alt-A first lien				1,127		2,397		1,487		5,011		5,731		0.9
	Option ARM				0		1,302		1,260		2,562		2,809		0.4
	Subprime (including net interest margin securities)				334		2,468		212		3,014		8,572		0.5
Second lien U.S. RMBS:
	Closed-end second lien				153		438		467		1,058		1,087		0.2
	Home equity lines of credit ("HELOCs")				470		—		3,134		3,604		4,281		0.6
		Total U.S. RMBS			2,110		7,187		6,560		15,857		23,266		2.7
Other structured finance					3,756		424		2,428		6,608		109,430		1.1
Public finance					4,241		204		865		5,310		454,500		0.9
			Total	$	10,107	$	7,815	$	9,853	$	27,775	$	587,196		4.7	%

				December 31, 2010
				BIG Net Par Outstanding
												Net Par Outstanding		BIG Net Par as a % of Net Par Outstanding
				BIG 1		BIG 2		BIG 3		Total BIG
				(in millions)
First lien U.S. RMBS:
	Prime first lien			$	82	$	542	$	—	$	624	$	849		0.1	%
	Alt-A first lien				976		3,108		573		4,657		6,134		0.8
	Option ARM				33		2,186		640		2,859		3,214		0.5
	Subprime (including net interest margin securities)				729		2,248		106		3,083		9,039		0.4
Second lien U.S. RMBS:
	Closed-end second lien				63		444		624		1,131		1,164		0.2
	HELOCs				369		—		3,632		4,001		4,730		0.6
		Total U.S. RMBS			2,252		8,528		5,575		16,355		25,130		2.6
Other structured finance					2,758		292		2,447		5,497		124,262		0.9
Public finance					3,752		283		919		4,954		467,739		0.8
			Total	$	8,762	$	9,103	$	8,941	$	26,806	$	617,131		4.3	%

Net Par Outstanding for Below Investment Grade Credits

		As of June 30, 2011
		Net Par Outstanding						Number of Risks(3)
Description		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total
		(dollars in millions)
BIG:
	Category 1	$	6,877	$	3,230	$	10,107		151		30		181
	Category 2		5,038		2,777		7,815		84		44		128
	Category 3		7,424		2,429		9,853		129		23		152
Total BIG		$	19,339	$	8,436	$	27,775		364		97		461

		As of December 31, 2010
		Net Par Outstanding						Number of Risks(3)
Description		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total		Financial Guaranty Insurance(1)		Credit Derivative(2)		Total
		(dollars in millions)
BIG:
	Category 1	$	5,521	$	3,241	$	8,762		120		31		151
	Category 2		5,646		3,457		9,103		97		50		147
	Category 3		7,281		1,660		8,941		115		13		128
Total BIG		$	18,448	$	8,358	$	26,806		332		94		426

(1)

Represents contracts accounted for as financial guaranty insurance. See Note 4.

(2)

Represents contracts accounted for as credit derivatives and carried at fair value on the consolidated balance sheets. See Note 6.

(3)

A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.