
Details of fixed income securities by category as of September 30, 2021
Table	7.1a
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	184,578	$	—	$	434	$	(277)	$	184,735
Obligations of U.S. states and political subdivisions		2,372,020		—		146,149		(3,639)		2,514,530
Corporate debt securities		2,856,671		—		100,264		(8,438)		2,948,497
ABS		158,637		(1)		1,337		(198)		159,775
RMBS		337,353		—		3,581		(1,666)		339,268
CMBS		319,187		—		9,634		(628)		328,193
CLOs		408,121		—		913		(64)		408,970
Foreign government debt		13,748		—		58		(40)		13,766

Total fixed income securities		$	6,650,315	$	(1)	$	262,370	$	(14,950)	$	6,897,734


Details of fixed income securities by category as of December 31, 2020
Table	7.1b

(In thousands)		Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized (Losses) (1)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	264,531	$	—	$	1,164	$	(2)	$	265,693
Obligations of U.S. states and political subdivisions		2,083,568		—		166,557		(256)		2,249,869
Corporate debt securities		2,690,860		—		155,156		(1,728)		2,844,288
ABS		203,807		(49)		2,946		(18)		206,686
RMBS		425,532		—		6,472		(838)		431,166
CMBS		312,572		—		16,055		(1,125)		327,502
CLOs		310,616		—		566		(692)		310,490
Foreign government debt		4,485		—		224		—		4,709
Commercial paper		21,193		—		—		—		21,193
Total fixed income securities		$	6,317,164	$	(49)	$	349,140	$	(4,659)	$	6,661,596

We had $13.8 million and $14.1 million of investments at fair value on deposit with various states as of September 30, 2021 and December 31, 2020, respectively, due to regulatory requirements of those state insurance departments. In connection with our insurance and reinsurance activities within MAC and MIC, insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $187.5 million and $160.3 million at September 30, 2021 and December 31, 2020, respectively.

The amortized cost and fair values of fixed income securities at September 30, 2021, by contractual maturity, are shown in table 7.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most ABS, RMBS, CMBS, and CLOs provide for periodic payments throughout their lives, they are listed in separate categories.


Fixed income securities maturity schedule
Table	7.2
		September 30, 2021
(In thousands)		Amortized cost		Fair Value
Due in one year or less		$	415,090	$	418,673
Due after one year through five years		1,856,136		1,919,980
Due after five years through ten years		1,666,042		1,757,537
Due after ten years		1,489,749		1,565,338
		5,427,017		5,661,528

ABS		158,637		159,775
RMBS		337,353		339,268
CMBS		319,187		328,193
CLOs		408,121		408,970
Total as of September 30, 2021		$	6,650,315	$	6,897,734

Proceeds from sales of fixed income securities classified as available-for-sale were $246.8 million and $713.1 million during the nine months ended September 30, 2021 and 2020, respectively. Gross gains of $1.4 million and $6.7 million and gross losses of $0.3 million and $1.0 million were realized during the three and nine months ended September 30, 2021. We did not record any realized losses for the three and nine months ended September 30, 2021 related to our intent to sell certain securities. During the three and nine months ended September 30, 2020 gross gains of $3.4 million and $15.9 million and gross losses of $0.8 million and $5.9 million, respectively, were realized. We recorded $0.4 million of realized losses for the three months ended September 30, 2020 and $0.7 million of realized losses for the nine months ended September 30, 2020 related to our intent to sell certain securities.

For the three and nine months ended September 30, 2021, we recognized $0.1 million and $0.3 million of net losses on equity securities still held as of September 30, 2021. For the three and nine months ended September 30, 2020, we recognized $0.1 million and $0.4 million of net gains, respectively, on equity securities still held as of September 30, 2020.

Other invested assets include an investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility, and our current FHLB Advance amount is secured by eligible collateral whose fair value is maintained at a minimum of 102% of the outstanding principal balance of the FHLB Advance. As of September 30, 2021 and December 31, 2020, that collateral consisted of fixed income securities included in our total investment portfolio, and cash and cash equivalents, with a total fair value of $163.7 million and $163.9 million, respectively.

Tables 7.4a and 7.4b below summarize, for all available-for-sale investments in an unrealized loss position at September 30, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 7.4a and 7.4b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2020 Annual Report on Form 10-K.


Unrealized loss aging for securities by type and length of time as of September 30, 2021
Table	7.4a

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	88,312	$	(277)	$	—	$	—	$	88,312	$	(277)
Obligations of U.S. states and political subdivisions		250,099		(3,479)		15,638		(160)		265,737		(3,639)
Corporate debt securities		468,720		(8,438)		—		—		468,720		(8,438)
ABS		58,901		(198)		—		—		58,901		(198)
RMBS		174,094		(1,302)		26,733		(364)		200,827		(1,666)
CMBS		82,653		(628)		—		—		82,653		(628)
CLOs		127,483		(29)		21,974		(35)		149,457		(64)
Foreign government debt		4,445		(40)		—		—		4,445		(40)
Total		$	1,254,707	$	(14,391)	$	64,345	$	(559)	$	1,319,052	$	(14,950)


Unrealized loss aging for securities by type and length of time as of December 31, 2020
Table	7.4b

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	2,690	$	(2)	$	—	$	—	$	2,690	$	(2)
Obligations of U.S. states and political subdivisions		31,416		(256)		—		—		31,416		(256)
Corporate debt securities		44,968		(1,728)		—		—		44,968		(1,728)
ABS		14,929		(18)		—		—		14,929		(18)
RMBS		98,409		(773)		3,566		(65)		101,975		(838)
CMBS		13,212		(789)		2,799		(336)		16,011		(1,125)
CLOs		95,287		(261)		73,904		(431)		169,191		(692)
Total		$	300,911	$	(3,827)	$	80,269	$	(832)	$	381,180	$	(4,659)

Based on current facts and circumstances, we believe the unrealized losses as of September 30, 2021 presented in table 7.4a above are not indicative of the ultimate collectability of the current amortized cost of the securities. The unrealized losses in all categories of our investments at September 30, 2021 were primarily caused by changes in interest rates between the time of purchase and the respective fair value measurement date. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists.