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Note 3 - Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2013
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.
 
(In thousands)
June 30,
2013
 
December 31,
2012
Balance Sheets
 
 
 
Derivative assets:
 
 
 
Financial Guaranty credit derivative assets
$
7,036

 
$
12,024

NIMS related and other
2,343

 
1,585

Total derivative assets
9,379

 
13,609

Derivative liabilities:
 
 
 
Financial Guaranty credit derivative liabilities
285,939

 
196,406

Financial Guaranty VIE derivative liabilities
64,637

 
70,467

Total derivative liabilities
350,576

 
266,873

Total derivative liabilities, net
$
341,197

 
$
253,264
Derivative Instruments, Gain (Loss) [Table Text Block]
The components of the (losses) gains included in the change in fair value of derivative instruments are as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(In thousands)
2013
 
2012
 
2013
 
2012
Statements of Operations
 
 
 
 
 
 
 
Net premiums earned—derivatives
$
4,857

 
$
7,224

 
$
9,849

 
$
15,872

Financial Guaranty credit derivatives
80,293

 
(39,161
)
 
(95,431
)
 
(119,380
)
Financial Guaranty VIE derivatives
1,477

 
(1,136
)
 
4,539

 
(2,363
)
NIMS related and other
(92
)
 
(51
)
 
(92
)
 
(10
)
Change in fair value of derivative instruments
$
86,535

 
$
(33,124
)
 
$
(81,135
)
 
$
(105,881
)
Schedule of Derivative Instruments [Table Text Block]
The following table shows selected information about our derivative contracts:
($ in thousands)
June 30, 2013
Number of
Contracts
 
Par/
Notional
Exposure
 
Total Net Asset/
(Liability)
Product
 
 
 
 
 
NIMS related and other (1)
—

 
$
—

 
$
2,343

Corporate CDOs
24

 
9,553,298

 
1,584

Non-Corporate CDOs and other derivative transactions:
 
 
 
 
 
Trust Preferred Securities (“TruPs”)
13

 
1,053,987

 
(21,792
)
CDOs of commercial mortgage-backed securities (“CMBS”)
4

 
1,831,000

 
(102,330
)
Other:
 
 
 
 
 
Structured finance
5

 
559,955

 
(84,002
)
Public finance
22

 
1,297,729

 
(55,881
)
Total Non-Corporate CDOs and other derivative transactions
44

 
4,742,671

 
(264,005
)
Assumed financial guaranty credit derivatives:
 
 
 
 
 
Structured finance
32

 
187,015

 
(15,883
)
Public finance
5

 
104,800

 
(599
)
Total Assumed
37

 
291,815

 
(16,482
)
Financial Guaranty VIE derivative liabilities (2)
1

 
77,236

 
(64,637
)
Grand Total
106

 
$
14,665,020

 
$
(341,197
)
 ______________________
(1)
Represents NIMS derivative assets related to consolidated NIMS VIEs and common stock warrants. Because 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 that we have consolidated. See Note 5 for more information on this transaction, the underlying reference securities and our maximum exposure to loss from this consolidated financial guaranty transaction. 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.