Note 3 - Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table sets forth our 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, 2014		December 31, 2013
Balance Sheets
Derivative assets:
Financial Guaranty credit derivative assets	$	6,438	$	6,323
Fixed-maturity derivative assets	15,595		10,319
Total derivative assets	22,033		16,642
Derivative liabilities:
Financial Guaranty credit derivative liabilities	148,041		238,728
Financial Guaranty VIE derivative liabilities	52,186		68,457
Total derivative liabilities	200,227		307,185
Total derivative liabilities, net	$	178,194	$	290,543

Derivative Instruments, Gain (Loss) [Table Text Block]

The components of the gains (losses) included in change in fair value of derivative instruments are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2014			2013			2014			2013
Statements of Operations
Net premiums earned—derivatives	$	3,346		$	4,857		$	6,791		$	9,849
Financial Guaranty credit derivatives	60,526			80,293			88,542			(95,431		)
Financial Guaranty VIE derivatives	(4,976		)	1,477			15,141			4,539
Other derivatives	(1,419		)	(92		)	(2,911		)	(92		)
Change in fair value of derivative instruments	$	57,477		$	86,535		$	107,563		$	(81,135	)

Schedule of Derivative Instruments [Table Text Block]

The following table shows selected information about our derivative contracts:

($ in thousands)	June 30, 2014
	Number of Contracts	Par/ Notional Exposure		Total Net Asset (Liability)
Product
Corporate CDOs	14	$	6,060,500	$	1,545
Non-Corporate CDOs and other derivative transactions:
Trust preferred securities (“TruPs”)	9	820,536		(22,240		)
CDOs of commercial mortgage-backed securities (“CMBS”)	1	430,000		(36,738		)
Other:
Structured finance	3	441,375		(44,223		)
Public finance	21	1,296,202		(29,390		)
Total Non-Corporate CDOs and other derivative transactions	34	2,988,113		(132,591		)
Assumed financial guaranty credit derivatives:
Structured finance	22	154,261		(10,171		)
Public finance	4	93,208		(386		)
Total Assumed	26	247,469		(10,557		)
Financial Guaranty VIE derivative liabilities (1)	1	79,020		(52,186		)
Other (2)	3	—		15,595
Grand Total	78	$	9,375,102	$	(178,194	)

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(1) Represents the fair value of a CDS included in a VIE that we have consolidated.

(2) Represents derivative assets related to other purchased derivatives for which we do not have loss exposure that exceeds our net asset amount.