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Note 4 - Derivative Instruments Level 3 (Tables)
 12 Months Ended
Dec. 31, 2012
Derivative Instruments [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table sets forth our gross unrealized gains and gross unrealized losses on derivative assets and liabilities as of the dates indicated. Certain contracts are in an asset position because the net present value of the contractual premium we receive exceeds the net present value of our estimate of the expected future premiums that a financial guarantor of similar credit quality to us would charge to provide the same credit protection, assuming a transfer of our obligation to such financial guarantor as of the measurement date.
 
 
December 31,
(In thousands)
2012
 
2011
Balance Sheets
 
 
 
Derivative assets:
 
 
 
Financial Guaranty credit derivative assets
$
12,024

 
$
15,432

NIMS related and other
1,585

 
1,780

Total derivative assets
13,609

 
17,212

Derivative liabilities:
 
 
 
Financial Guaranty credit derivative liabilities
196,406

 
106,505

Financial Guaranty VIE derivative liabilities
70,467

(1)
19,501

Total derivative liabilities
266,873

 
126,006

Total derivative liabilities, net
$
253,264

 
$
108,794


________________
(1)
As a result of the CDO Commutation Transactions described in Note 1, we established a VIE. See Note 6 for further details.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The components of the (losses) gains included in change in fair value of derivative instruments are as follows:
 
Year Ended December 31,
(In thousands)
2012
 
2011
 
2010
Statements of Operations
 
 
 
 
 
Net premiums earned—derivatives
$
28,693

 
$
41,753

 
$
47,123

Financial Guaranty credit derivatives
(173,610
)
 
597,969

 
(583,235
)
Financial Guaranty VIE derivatives
1,189

 
(10,696
)
 
(14,523
)
NIMS related and other
(297
)
 
(631
)
 
(1,937
)
Put Options on Money Market Committed Preferred Custodial Trust Securities (“CPS”)
—

 
—

 
(6,140
)
Change in fair value of derivative instruments
$
(144,025
)
 
$
628,395

 
$
(558,712
)
Schedule of Derivative Instruments [Table Text Block]
The following table shows selected information about our derivative contracts:
 
($ in thousands)
December 31, 2012
Number of
Contracts
 
Par/
Notional
Exposure
 
Total Net Asset/
(Liability)
Product
 
 
 
 
 
NIMS related and other (1)
—

 
$
—

 
$
1,585

Corporate CDOs
35

 
13,770,790

 
2,817

Non-Corporate CDOs and other derivative transactions:
 
 
 
 
 
TruPs
13

 
1,086,583

 
(11,112
)
CDOs of commercial mortgage-backed securities (“CMBS”)
4

 
1,831,000

 
(74,651
)
Other:
 
 
 
 
 
Structured finance
6

 
643,638

 
(42,983
)
Public finance
23

 
1,453,830

 
(44,417
)
Total Non-Corporate CDOs and other derivative transactions
46

 
5,015,051

 
(173,163
)
Assumed financial guaranty credit derivatives:
 
 
 
 
 
Structured finance
34

 
247,891

 
(13,364
)
Public finance
8

 
133,319

 
(672
)
Total Assumed
42

 
381,210

 
(14,036
)
Financial Guaranty VIE derivative liabilities (2)
1

 
76,349

 
(70,467
)
Grand Total
124

 
$
19,243,400

 
$
(253,264
)
________________
(1)
Represents NIMS derivative assets related to consolidated NIMS VIEs. Also includes common stock warrants. Because none of these investments represent financial guaranty contracts that we issued, they cannot become liabilities, and therefore, do not represent additional par exposure.
(2)
Represents the fair value of a CDS included in a VIE, which we consolidate, relating to the Terminated TruPs CDOs. The assets in the VIE represent the only funds available to pay the CDS Counterparty for amounts due under the contract; therefore, the notional exposure presented for the CDS is limited to the current trust assets. See Notes 1 and 6 for information on the underlying reference securities and on our maximum exposure to loss from this consolidated financial guaranty transaction.