Investments

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:



	March 31, 2016
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	152,233	$	153,303	$	1,072	$	2
State and municipal obligations	72,249		75,289		3,160		120
Corporate bonds and notes	1,027,955		1,056,504		34,065		5,516
RMBS	304,401		307,516		3,227		112
CMBS	504,978		509,070		7,926		3,834
Other ABS	399,936		396,461		968		4,443
Foreign government and agency securities	25,693		25,192		232		733
Total fixed-maturities available for sale	2,487,445		2,523,335		50,650		14,760
Equity securities available for sale	500		500		—		—
Total debt and equity securities	$	2,487,945	$	2,523,835	$	50,650	$	14,760



	December 31, 2015
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	13,773	$	13,752	$	—	$	21
State and municipal obligations	36,920		37,900		1,100		120
Corporate bonds and notes	815,024		802,193		4,460		17,291
RMBS	226,744		224,905		625		2,464
CMBS	415,780		406,910		69		8,939
Other ABS	359,452		355,494		16		3,974
Foreign government and agency securities	25,663		24,307		27		1,383
Total fixed-maturities available for sale	1,893,356		1,865,461		6,297		34,192
Equity securities available for sale (1)	75,538		75,430		—		108
Total debt and equity securities	$	1,968,894	$	1,940,891	$	6,297	$	34,300

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(1)	Comprising primarily a multi-sector exchange-traded fund.

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:



(In thousands)	March 31, 2016		December 31, 2015
Trading securities:
U.S. government and agency securities	$	98,869	$	129,913
State and municipal obligations	311,650		303,946
Corporate bonds and notes	582,035		580,993
RMBS	69,304		72,192
CMBS	124,851		137,678
Other ABS	8,911		16,131
Foreign government and agency securities	13,469		13,268
Equity securities	—		25,016
Total	$	1,209,089	$	1,279,137

For trading securities held at March 31, 2016 and December 31, 2015, we had net unrealized gains during the three months ended March 31, 2016 and net unrealized losses during the year ended December 31, 2015 associated with those securities of $32.3 million and $25.2 million, respectively.

For the three months ended March 31, 2016, we did not transfer any securities from the available for sale or trading categories.

Net realized and unrealized gains (losses) on investments and other financial instruments consisted of:



	Three Months Ended March 31,
(In thousands)	2016			2015
Net realized losses:
Fixed-maturities available for sale	$	(3,148	)	$	(51	)
Equities available for sale	(170		)	—
Trading securities	(2,240		)	(4,568		)
Short-term investments	(39		)	—
Other gains	18			105
Net realized losses on investments	(5,579		)	(4,514		)
Unrealized gains on trading securities	35,231			20,701
Total net gains on investments	29,652			16,187
Net gains on other financial instruments	1,634			592
Net gains on investments and other financial instruments	$	31,286		$	16,779

The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:



March 31, 2016: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
March 31, 2016: ($ in thousands) Description of Securities	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	1	$	2,296	$	2	—	$	—	$	—	1	$	2,296	$	2
State and municipal obligations	3	18,579		120		—	—		—		3	18,579		120
Corporate bonds and notes	40	124,360		4,449		18	34,388		1,067		58	158,748		5,516
RMBS	5	91,117		112		—	—		—		5	91,117		112
CMBS	42	186,024		3,834		—	—		—		42	186,024		3,834
Other ABS	85	226,645		2,682		14	42,875		1,761		99	269,520		4,443
Foreign government and agency securities	9	9,958		468		4	3,011		265		13	12,969		733
Total	185	$	658,979	$	11,667	36	$	80,274	$	3,093	221	$	739,253	$	14,760



December 31, 2015: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	1	$	5,752	$	21	—	$	—	$	—	1	$	5,752	$	21
State and municipal obligations	2	11,674		120		—	—		—		2	11,674		120
Corporate bonds and notes	117	510,807		16,773		6	8,700		518		123	519,507		17,291
RMBS	12	168,415		2,464		—	—		—		12	168,415		2,464
CMBS	58	387,268		8,939		—	—		—		58	387,268		8,939
Other ABS	96	284,998		2,559		14	43,225		1,415		110	328,223		3,974
Foreign government and agency securities	18	18,733		1,095		3	2,278		288		21	21,011		1,383
Equity securities	1	74,930		108		—	—		—		1	74,930		108
Total	305	$	1,462,577	$	32,079	23	$	54,203	$	2,221	328	$	1,516,780	$	34,300

During the first three months of 2016 and 2015, we did not recognize in earnings any impairment losses related to credit deterioration.

Although we held securities in an unrealized loss position as of March 31, 2016, we did not consider them to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of March 31, 2016, were generally caused by interest rate or credit spread movements since the purchase date. As of March 31, 2016, we estimated that the present value of cash flows expected to be collected from these securities would be sufficient to recover the amortized cost basis of these securities. As of March 31, 2016, we did not have the intent to sell any debt securities in an unrealized loss position, and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at March 31, 2016.

The contractual maturities of fixed-maturity investments are as follows:



	March 31, 2016
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	9,618	$	9,629
Due after one year through five years (1)	323,427		326,269
Due after five years through ten years (1)	564,211		578,151
Due after ten years (1)	380,874		396,239
RMBS (2)	304,401		307,516
CMBS (2)	504,978		509,070
Other ABS (2)	399,936		396,461
Total	$	2,487,445	$	2,523,335

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(1)	Actual maturities may differ as a result of calls before scheduled maturity.


(2)	RMBS, CMBS and Other ABS are shown separately, as they are not due at a single maturity date.

At March 31, 2016 and December 31, 2015, Radian Guaranty had $75.3 million and $74.7 million, respectively, in a collateral account pursuant to the Freddie Mac Agreement. This collateral account, which contains investments primarily invested in and classified as part of our trading securities, is pledged to cover Loss Mitigation Activity on the loans subject to the Freddie Mac Agreement. Subject to certain conditions in the Freddie Mac Agreement, amounts in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of that agreement. See Note 9 for additional information.