Investments

Available for Sale Securities

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



	March 31, 2017
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	128,347	$	125,466	$	279	$	3,160
State and municipal obligations	67,600		69,284		2,316		632
Corporate bonds and notes	1,555,516		1,556,643		17,823		16,696
RMBS	278,710		273,549		445		5,606
CMBS	402,847		402,525		2,248		2,570
Other ABS	477,251		478,099		1,945		1,097
Foreign government and agency securities	29,257		29,849		645		53
Other investments	2,000		2,000		—		—
Total fixed-maturities available for sale	2,941,528		2,937,415		25,701		29,814
Equity securities available for sale (1)	1,330		1,330		—		—
Total debt and equity securities	$	2,942,858	$	2,938,745	$	25,701	$	29,814

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(1)	Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the Federal Home Loan Bank of Pittsburgh.



	December 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	$	78,931	$	75,474	$	2	$	3,459
State and municipal obligations	66,124		67,171		1,868		821
Corporate bonds and notes	1,463,720		1,455,628		14,320		22,412
RMBS	358,262		350,628		197		7,831
CMBS	429,057		428,289		2,255		3,023
Other ABS	433,603		434,728		2,037		912
Foreign government and agency securities	24,771		24,594		148		325
Other investments	2,000		2,000		—		—
Total fixed-maturities available for sale	2,856,468		2,838,512		20,827		38,783
Equity securities available for sale (1)	1,330		1,330		—		—
Total debt and equity securities	$	2,857,798	$	2,839,842	$	20,827	$	38,783

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(1)	Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the Federal Home Loan Bank of Pittsburgh.

Gross Unrealized Losses and Fair Value of Available for Sale Securities

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, 2017
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ 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	9	$	74,457	$	3,160	—	$	—	$	—	9	$	74,457	$	3,160
State and municipal obligations	5	19,981		632		—	—		—		5	19,981		632
Corporate bonds and notes	150	620,609		16,360		2	4,471		336		152	625,080		16,696
RMBS	54	217,577		5,541		3	7,308		65		57	224,885		5,606
CMBS	38	186,354		2,519		3	9,924		51		41	196,278		2,570
Other ABS	75	186,578		949		5	21,978		148		80	208,556		1,097
Foreign government and agency securities	4	4,321		53		—	—		—		4	4,321		53
Total	335	$	1,309,877	$	29,214	13	$	43,681	$	600	348	$	1,353,558	$	29,814



	December 31, 2016
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ 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	7	$	73,160	$	3,459	—	$	—	$	—	7	$	73,160	$	3,459
State and municipal obligations	7	30,901		821		—	—		—		7	30,901		821
Corporate bonds and notes	185	788,876		22,135		2	4,582		277		187	793,458		22,412
RMBS	56	311,031		7,822		1	1,398		9		57	312,429		7,831
CMBS	37	218,170		2,909		2	6,585		114		39	224,755		3,023
Other ABS	58	131,268		470		16	45,886		442		74	177,154		912
Foreign government and agency securities	12	13,034		325		—	—		—		12	13,034		325
Total	362	$	1,566,440	$	37,941	21	$	58,451	$	842	383	$	1,624,891	$	38,783

During the three months ended March 31, 2017 and the year ended December 31, 2016, 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, 2017, 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, 2017 were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect the present value of cash flows to be collected from these securities to be sufficient to recover the amortized cost basis of these securities. As of March 31, 2017, 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, 2017.

Trading Securities

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, 2017		December 31, 2016
Trading securities:
U.S. government and agency securities	$	33,006	$	33,042
State and municipal obligations	235,864		259,573
Corporate bonds and notes	420,633		453,617
RMBS	35,911		38,214
CMBS	70,980		78,984
Other ABS	6,733		8,219
Foreign government and agency securities	8,186		8,213
Total	$	811,313	$	879,862

For trading securities held at March 31, 2017 and December 31, 2016, we had net unrealized gains associated with those securities of $3.5 million and $16.8 million during the three months ended March 31, 2017 and the year ended December 31, 2016, respectively.

For the three months ended March 31, 2017, we did not transfer any securities from the available for sale or trading categories.

Net Gains (Losses) on Investments and Other Financial Instruments

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



	Three Months Ended March 31,
(In thousands)	2017			2016
Net realized gains (losses):
Fixed-maturities available for sale	$	(2,509	)	$	(3,148	)
Equity securities available for sale	—			(170		)
Trading securities	(5,694		)	(2,240		)
Short-term investments	6			(39		)
Other gains (losses)	18			18
Net realized gains (losses) on investments	(8,179		)	(5,579		)
Unrealized gains (losses) on trading securities	5,226			35,231
Total net gains (losses) on investments	(2,953		)	29,652
Net gains (losses) on other financial instruments	102			1,634
Net gains (losses) on investments and other financial instruments	$	(2,851	)	$	31,286

Contractual Maturities

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



	March 31, 2017
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	65,472	$	65,502
Due after one year through five years (1)	411,562		414,006
Due after five years through 10 years (1)	905,821		901,736
Due after 10 years (1)	399,864		401,998
RMBS (2)	278,710		273,549
CMBS (2)	402,848		402,525
Other ABS (2)	477,251		478,099
Total	$	2,941,528	$	2,937,415

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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.

Other

At March 31, 2017 and December 31, 2016, Radian Guaranty had $64.3 million and $63.9 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. See Note 10 for additional information.