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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis

			Fair Value
			as of							Range
			June 30,							(Weighted
In millions			2016			Valuation Techniques		Unobservable Input		Average)
Assets of consolidated VIEs:
	Loans receivable at fair value		$	1,045		Market prices adjusted for financial		Impact of financial guarantee		0% - 26% (2%)
						guarantees provided to VIE obligations
						Discounted cash flow		Multiples(1)
	Loan repurchase commitments			401		Discounted cash flow		Recovery rates(2)
								Breach rates(2)
Liabilities of consolidated VIEs:
	Variable interest entity notes			523		Market prices of VIE assets		Impact of financial guarantee		0% - 52% (23%)
						adjusted for financial guarantees provided
Credit derivative liabilities, net:
	CMBS			92		BET Model		Recovery rates		25% - 90% (57%)
								Nonperformance risk		22% - 37% (37%)
								Weighted average life (in years)		0.9 - 3.3 (1.7)
								CMBS spreads		0% - 57% (28%)
	Multi-sector CDO			4		Direct Price Model		Nonperformance risk		58% - 58% (58%)
	Other			8		BET Model and Dual Default		Nonperformance risk		52% - 56% (55%)
								Weighted average life (in years)		5.9 - 6.9 (6.3)
Other derivative liabilities				21		Discounted cash flow		Cash flows		$0 - $83 ($42)(3)
____________
(1) - Unobservable inputs are not developed by the Company.
(2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
(3) - Midpoint of cash flows are used for the weighted average.

			Fair Value
			as of							Range
			December 31,							(Weighted
In millions			2015			Valuation Techniques		Unobservable Input		Average)
Assets of consolidated VIEs:
	Loans receivable at fair value		$	1,292		Market prices adjusted for financial		Impact of financial guarantee		0% - 5% (1%)
						guarantees provided to VIE obligations
	Loan repurchase commitments			396		Discounted cash flow		Recovery rates(1)
								Breach rates(1)
Liabilities of consolidated VIEs:
	Variable interest entity notes			1,267		Market prices of VIE assets		Impact of financial guarantee		0% - 37% (14%)
						adjusted for financial guarantees provided
Credit derivative liabilities, net:
	CMBS			72		BET Model		Recovery rates		25% - 90% (66%)
								Nonperformance risk		33% - 55% (54%)
								Weighted average life (in years)		1.1 - 3.2 (1.6)
								CMBS spreads		0% - 59% (19%)
	Multi-sector CDO			3		Direct Price Model		Nonperformance risk		59% - 59% (59%)
	Other			10		BET Model and Dual Default		Recovery rates		42% - 45% (43%)
								Nonperformance risk		59% - 59% (59%)
								Weighted average life (in years)		0.5 - 7.3 (1.9)
Other derivative liabilities				18		Discounted cash flow		Cash flows		$0 - $83 ($42)(2)
	____________
	(1) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
	(2) - Midpoint of cash flows are used for the weighted average.

Company's Assets And Liabilities Measured At Fair Value On Recurring Basis

						Fair Value Measurements at Reporting Date Using
						Quoted Prices in			Significant
						Active Markets			Other			Significant				Counterparty
						for Identical			Observable			Unobservable				and Cash			Balance as of
						Assets			Inputs			Inputs				Collateral			June 30,
In millions						(Level 1)			(Level 2)			(Level 3)				Netting			2016
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency					$	954		$	119		$	-			$	-		$	1,073
	State and municipal bonds						-			1,615			124	(1)			-			1,739
	Foreign governments						147			37			7	(1)			-			191
	Corporate obligations						-			1,652			2	(1)			-			1,654
	Mortgage-backed securities:
		Residential mortgage-backed agency					-			963			-				-			963
		Residential mortgage-backed non-agency					-			45			-				-			45
		Commercial mortgage-backed					-			37			-				-			37
	Asset-backed securities:
		Collateralized debt obligations					-			8			20	(1)			-			28
		Other asset-backed					-			362			41	(1)			-			403
			Total fixed-maturity investments				1,101			4,838			194				-			6,133
Money market securities							82			-			-				-			82
Perpetual debt and equity securities							20			15			-				-			35
Cash and cash equivalents							568			-			-				-			568
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives					-			3			-				-			3
						Fair Value Measurements at Reporting Date Using
						Quoted Prices in			Significant
						Active Markets			Other			Significant				Counterparty
						for Identical			Observable			Unobservable				and Cash			Balance as of
						Assets			Inputs			Inputs				Collateral			June 30,
In millions						(Level 1)			(Level 2)			(Level 3)				Netting			2016
Assets of consolidated VIEs:
	Corporate obligations						-			34			3	(1)			-			37
	Mortgage-backed securities:
		Residential mortgage-backed non-agency					-			156			1	(1)			-			157
		Commercial mortgage-backed					2			52			2	(1)			-			56
	Asset-backed securities:
		Collateralized debt obligations					-			12			1	(1)			-			13
		Other asset-backed					-			14			4	(1)			-			18
	Cash						37			-			-				-			37
	Loans receivable at fair value:
		Residential loans receivable					-			-			1,045				-			1,045
		Other loans receivable					-			-			147	(1)			-			147
	Loan repurchase commitments						-			-			401				-			401
	Derivative assets:
		Currency derivatives					-			-			9	(1)			-			9
Total assets						$	1,810		$	5,124		$	1,807			$	-		$	8,741
Liabilities:
Medium-term notes						$	-		$	-		$	161	(1)		$	-		$	161
Derivative liabilities:
	Insured derivatives:
		Credit derivatives					-			2			104				-			106
	Non-insured derivatives:
		Interest rate derivatives					-			304			-				(53)			251
		Other					-			-			21				-			21
Other liabilities:
	Warrants						-			13			-				-			13
Liabilities of consolidated VIEs:
	Variable interest entity notes						-			980			523				-			1,503
Total liabilities						$	-		$	1,299		$	809			$	(53)		$	2,055
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.

						Fair Value Measurements at Reporting Date Using
						Quoted Prices in			Significant
						Active Markets			Other			Significant				Counterparty
						for Identical			Observable			Unobservable				and Cash			Balance as of
						Assets			Inputs			Inputs				Collateral			December 31,
In millions						(Level 1)			(Level 2)			(Level 3)				Netting			2015
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency					$	866		$	110		$	-			$	-		$	976
	State and municipal bonds						-			1,685			41	(1)			-			1,726
	Foreign governments						153			43			2	(1)			-			198
	Corporate obligations						-			1,450			7	(1)			-			1,457
	Mortgage-backed securities:
		Residential mortgage-backed agency					-			993			-				-			993
		Residential mortgage-backed non-agency					-			51			-				-			51
		Commercial mortgage-backed					-			31			-				-			31
	Asset-backed securities:
		Collateralized debt obligations					-			5			29	(1)			-			34
		Other asset-backed					-			281			38	(1)			-			319
			Total fixed-maturity investments				1,019			4,649			117				-			5,785
Money market securities							354			-			-				-			354
Perpetual debt and equity securities							18			190			-				-			208
Cash and cash equivalents							464			-			-				-			464
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives					-			4			-				(1)			3
						Fair Value Measurements at Reporting Date Using
						Quoted Prices in			Significant
						Active Markets			Other			Significant				Counterparty
						for Identical			Observable			Unobservable				and Cash			Balance as of
						Assets			Inputs			Inputs				Collateral			December 31,
In millions						(Level 1)			(Level 2)			(Level 3)				Netting			2015
Assets of consolidated VIEs:
	Corporate obligations						-			39			11	(1)			-			50
	Mortgage-backed securities:
		Residential mortgage-backed non-agency					-			172			-				-			172
		Commercial mortgage-backed					-			672			-				-			672
	Asset-backed securities:
		Collateralized debt obligations					-			13			1	(1)			-			14
		Other asset-backed					-			18			6	(1)			-			24
	Cash						58			-			-				-			58
	Loans receivable at fair value:
		Residential loans receivable					-			-			1,185				-			1,185
		Other loans receivable					-			-			107				-			107
	Loan repurchase commitments						-			-			396				-			396
	Derivative assets:
		Currency derivatives					-			-			11	(1)			-			11
Total assets						$	1,913		$	5,757		$	1,834			$	(1)		$	9,503
Liabilities:
Medium-term notes						$	-		$	-		$	161	(1)		$	-		$	161
Derivative liabilities:
	Insured derivatives:
		Credit derivatives					-			3			85				-			88
	Non-insured derivatives:
		Interest rate derivatives					-			240			-				(32)			208
		Other					-			-			18				-			18
Other liabilities:
	Warrants						-			18			-				-			18
	Securities sold, not yet purchased						18			-			-				-			18
Liabilities of consolidated VIEs:
	Variable interest entity notes						-			1,095			1,267				-			2,362
	Derivative liabilities:
		Interest rate derivatives					-			45			-				-			45
Total liabilities						$	18		$	1,401		$	1,531			$	(32)		$	2,918
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.

Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in			Significant			Significant			Fair Value			Carry Value
			Active Markets for			Other Observable			Unobservable			Balance as of			Balance as of
			Identical Assets			Inputs			Inputs			June 30,			June 30,
In millions			(Level 1)			(Level 2)			(Level 3)			2016			2016
Assets:
	Other investments		$	-		$	-		$	4		$	4		$	4
	Accrued investment income(1)			-			39			-			39			39
	Receivable for investments sold(1)			-			110			-			110			110
Assets of consolidated VIEs:
	Investments held-to-maturity			-			-			509			509			890
Total assets			$	-		$	149		$	513		$	662		$	1,043
Liabilities:
	Long-term debt		$	-		$	930		$	-		$	930		$	1,945
	Medium-term notes			-			-			490			490			830
	Investment agreements			-			-			587			587			424
	Payable for investments purchased(2)			-			149			-			149			149
Liabilities of consolidated VIEs:
	Variable interest entity notes			-			-			755			755			890
Total liabilities			$	-		$	1,079		$	1,832		$	2,911		$	4,238
Financial Guarantees:
	Gross		$	-		$	-		$	3,233		$	3,233		$	1,599
	Ceded			-			-			108			108			53
__________
(1) - Reported within "Other assets" on MBIA's consolidated balance sheets.
(2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets.

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in			Significant			Significant			Fair Value			Carry Value
			Active Markets for			Other Observable			Unobservable			Balance as of			Balance as of
			Identical Assets			Inputs			Inputs			December 31,			December 31,
In millions			(Level 1)			(Level 2)			(Level 3)			2015			2015
Assets:
	Other investments		$	-		$	-		$	3		$	3		$	3
	Accrued investment income(1)			-			38			-			38			38
	Receivable for investments sold(1)			-			26			-			26			26
Assets of consolidated VIEs:
	Investments held-to-maturity			-			-			2,401			2,401			2,689
Total assets			$	-		$	64		$	2,404		$	2,468		$	2,756
Liabilities:
	Long-term debt		$	-		$	762		$	-		$	762		$	1,889
	Medium-term notes			-			-			534			534			855
	Investment agreements			-			-			595			595			462
	Payable for investments purchased(2)			-			36			-			36			36
Liabilities of consolidated VIEs:
	Variable interest entity notes			-			-			2,596			2,596			2,689
Total liabilities			$	-		$	798		$	3,725		$	4,523		$	5,931
Financial Guarantees:
	Gross		$	-		$	-		$	3,093		$	3,093		$	1,530
	Ceded			-			-			94			94			56
__________
(1) - Reported within "Other assets" on MBIA's consolidated balance sheets.
(2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets.

Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2016
																																						Change in
																																						Unrealized
																																						Gains
																																						(Losses) for
																																						the Period
																																						Included in
								Unrealized																														Earnings
								Gains /			Unrealized			Foreign																								for Assets
								(Losses)			Gains /			Exchange																								still held
		Balance,			Realized			Included			(Losses)			Recognized															Transfers			Transfers						as of
		Beginning			Gains /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Period			(Losses)			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2016
Assets:
Foreign governments		$	2		$	-		$	-		$	-		$	-		$	5		$	-		$	-		$	-		$	-		$	-		$	7		$	-
Corporate obligations			1			-			-			-			-			1			-			-			-			-			-			2			-
Collateralized debt
obligations			26			-			-			17			-			-			-			(23)			-			-			-			20			-
Other asset-backed			39			-			-			2			-			-			-			-			-			-			-			41			-
State and municipal
bonds			3			-			-			-			-			121			-			-			-			-			-			124			-
Assets of
consolidated VIEs:
Corporate obligations			1			-			-			-			-			-			-			-			-			2			-			3			-
Residential mortgage-
backed non-agency			-			-			-			-			-			-			-			-			-			1			-			1			-
Commercial
mortgage-backed			2			-			-			-			-			-			-			-			-			-			-			2			-
Collateralized debt
obligations			1			-			-			-			-			-			-			-			-			-			-			1			-
Other asset-backed			3			-			-			-			-			-			-			-			-			1			-			4			-
Loans receivable-
residential			1,115			-			(16)			-			-			-			-			(54)			-			-			-			1,045			(16)
Loans receivable- other			253			-			1			-			-			-			-			-			(107)			-			-			147			1
Loan repurchase
commitments			399			-			2			-			-			-			-			-			-			-			-			401			2
Currency
derivatives, net			5			-			4			-			-			-			-			-			-			-			-			9			4
Total assets		$	1,850		$	-		$	(9)		$	19		$	-		$	127		$	-		$	(77)		$	(107)		$	4		$	-		$	1,807		$	(9)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2015
																																						Change in
																																						Unrealized
																																						Gains
																																						(Losses) for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								Gains /			Unrealized			Foreign																								Assets
								(Losses)			Gains /			Exchange																								still held
		Balance,			Realized			Included			(Losses)			Recognized															Transfers			Transfers						as of
		Beginning			Gains /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Period			(Losses)			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2015
Assets:
Foreign governments		$	6		$	-		$	-		$	-		$	-		$	-		$	-		$	(1)		$	-		$	-		$	-		$	5		$	-
Corporate obligations			10			-			-			-			-			-			-			-			-			8			(10)			8			-
Commercial
mortgage-backed			1			-			-			-			-			-			-			-			-			-			-			1			-
Collateralized debt
obligations			74			-			-			1			-			-			-			(9)			-			1			-			67			-
Other asset-backed			74			-			-			2			-			-			-			(5)			-			12			-			83			-
State and municipal
bonds			6			-			-			-			-			-			-			(1)			-			-			-			5			-
Assets of
consolidated VIEs:
Corporate obligations			53			-			(1)			-			-			-			-			(3)			-			-			(14)			35			-
Residential mortgage-
backed non-agency			3			-			-			-			-			-			-			-			-			2			-			5			-
Collateralized debt
obligations			4			-			-			-			-			-			-			-			-			-			-			4			-
Other asset-backed			21			-			(1)			-			-			-			-			(3)			-			-			-			17			(1)
Loans receivable-
residential			1,372			-			-			-			-			-			-			(54)			-			-			-			1,318			-
Loans receivable-other			108			-			-			-			-			-			-			-			-			-			-			108			-
Loan repurchase commitments			385			-			3			-			-			-			-			-			-			-			-			388			3
Currency derivatives, net			5			-			(5)			-			2			-			-			-			-			-			-			2			(3)
Total assets		$	2,122		$	-		$	(4)		$	3		$	2		$	-		$	-		$	(76)		$	-		$	23		$	(24)		$	2,046		$	(1)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2016
																																						Change in
																																						Unrealized
																																						Gains
																																						(Losses) for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								Gains /			Unrealized			Foreign																								Assets
								(Losses)			Gains /			Exchange																								still held
		Balance,			Realized			Included			(Losses)			Recognized															Transfers			Transfers						as of
		Beginning			Gains /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Year			(Losses)			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2016
Assets:
Foreign governments		$	2		$	-		$	-		$	-		$	-		$	5		$	-		$	-		$	-		$	-		$	-		$	7		$	-
Corporate obligations			7			-			-			-			-			-			-			-			-			-			(5)			2			-
Collateralized debt
obligations			29			-			-			18			-			-			-			(27)			-			-			-			20			-
Other asset-backed			38			(1)			(1)			7			-			-			-			(2)			-			-			-			41			(1)
State and municipal
bonds			41			-			-			-			-			121			-			(38)			-			-			-			124			-
Assets of
consolidated VIEs:
Corporate obligations			11			-			(5)			-			-			-			-			-			-			2			(5)			3			-
Residential mortgage-
backed non-agency			-			-			-			-			-			-			-			-			-			1			-			1			-
Commercial
mortgage-backed			-			-			-			-			-			-			-			-			-			2			-			2			-
Collateralized debt
obligations			1			-			-			-			-			-			-			-			-			-			-			1			-
Other asset-backed			6			-			(6)			-			-			-			-			-			-			4			-			4			-
Loans receivable- residential			1,185			-			(30)			-			-			-			-			(110)			-			-			-			1,045			(30)
Loans receivable-other			107			-			1			-			-			146			-			-			(107)			-			-			147			1
Loan repurchase
commitments			396			-			5			-			-			-			-			-			-			-			-			401			5
Currency
derivatives net			11			-			(2)			-			-			-			-			-			-			-			-			9			(2)
Total assets		$	1,834		$	(1)		$	(38)		$	25		$	-		$	272		$	-		$	(177)		$	(107)		$	9		$	(10)		$	1,807		$	(27)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2015
																																						Change in
																																						Unrealized
																																						Gains
																																						(Losses) for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								Gains /			Unrealized			Foreign																								Assets
								(Losses)			Gains /			Exchange																								still held
		Balance,			Realized			Included			(Losses)			Recognized															Transfers			Transfers						as of
		Beginning			Gains /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Year			(Losses)			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2015
Assets:
Foreign governments		$	6		$	-		$	-		$	-		$	-		$	-		$	-		$	(1)		$	-		$	-		$	-		$	5		$	-
Corporate obligations			10			-			-			-			-			-			-			-			-			8			(10)			8			-
Commercial
mortgage-backed			2			-			-			-			-			-			-			-			-			-			(1)			1			-
Collateralized debt
obligations			87			-			-			1			-			-			-			(14)			(8)			1			-			67			-
Other asset-backed			85			(2)			-			1			-			4			-			(7)			(8)			12			(2)			83			-
State and municipal
bonds			8			-			-			-			-			-			-			(1)			-			-			(2)			5			-
Assets of
consolidated VIEs:
Corporate obligations			55			-			(1)			-			-			-			-			(5)			-			-			(14)			35			-
Residential mortgage-
backed non-agency			3			-			1			-			-			-			-			(1)			-			2			-			5			-
Collateralized debt
obligations			5			-			-			-			-			-			-			(1)			-			-			-			4			-
Other asset-backed			26			-			2			-			-			-			-			(4)			-			-			(7)			17			2
Loans receivable - residential			1,431			-			(3)			-			-			-			-			(110)			-			-			-			1,318			(3)
Loans receivable - other			-			-			-			-			-			108			-			-			-			-			-			108			-
Loan repurchase
commitments			379			-			9			-			-			-			-			-			-			-			-			388			9
Currency derivatives, net			-			-			(1)			-			3			-			-			-			-			-			-			2			2
Total assets		$	2,097		$	(2)		$	7		$	2		$	3		$	112		$	-		$	(144)		$	(16)		$	23		$	(36)		$	2,046		$	10

Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

																																						Change in
																																						Unrealized
																																						(Gains)
																																						Losses for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								(Gains) /			Unrealized			Foreign																								Liabilities
								Losses			(Gains) /			Exchange																								still held
		Balance,			Realized			Included			Losses			Recognized															Transfers			Transfers						as of
		Beginning			(Gains) /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Period			Losses			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2016
Liabilities:
Medium-term notes		$	165		$	-		$	-		$	-		$	(4)		$	-		$	-		$	-		$	-		$	-		$	-		$	161		$	(4)
Credit derivatives, net			99			2			5			-			-			-			-			(2)			-			-			-			104			5
Other
derivatives			19			-			2			-			-			-			-			-			-			-			-			21			2
Liabilities of
consolidated VIEs:
VIE notes			1,176			-			(22)			-			-			-			-			-			(631)			-			-			523			(22)
Total liabilities		$	1,459		$	2		$	(15)		$	-		$	(4)		$	-		$	-		$	(2)		$	(631)		$	-		$	-		$	809		$	(19)
_______________
(1) - Transferred in and out at the end of the period.

																																						Change in
																																						Unrealized
																																						(Gains)
																																						Losses for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								(Gains) /			Unrealized			Foreign																								Liabilities
								Losses			(Gains) /			Exchange																								still held
		Balance,			Realized			Included			Losses			Recognized															Transfers			Transfers						as of
		Beginning			(Gains) /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Period			Losses			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2015
Liabilities:
Medium-term notes		$	180		$	-		$	(21)		$	-		$	7		$	-		$	-		$	-		$	-		$	-		$	-		$	166		$	(14)
Credit derivatives, net			207			3			(63)			-			-			-			-			(3)			-			-			-			144			(53)
Other
derivatives, net			21			-			-			-			-			-			-			-			-			-			-			21			-
Liabilities of
consolidated VIEs:
VIE notes			1,387			-			13			-			-			-			-			(26)			-			-			-			1,374			13
Total liabilities		$	1,795		$	3		$	(71)		$	-		$	7		$	-		$	-		$	(29)		$	-		$	-		$	-		$	1,705		$	(54)
_______________
(1) - Transferred in and out at the end of the period.

																																						Change in
																																						Unrealized
																																						(Gains)
																																						Losses for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								(Gains) /			Unrealized			Foreign																								Liabilities
								Losses			(Gains) /			Exchange																								still held
		Balance,			Realized			Included			Losses			Recognized															Transfers			Transfers						as of
		Beginning			(Gains) /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Year			Losses			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3(1)			Level 3(1)			Balance			2016
Liabilities:
Medium-term notes		$	161		$	-		$	(4)		$	-		$	4		$	-		$	-		$	-		$	-		$	-		$	-		$	161		$	-
Credit derivatives, net			85			16			19			-			-			-			-			(16)			-			-			-			104			22
Other
derivatives, net			18			-			3			-			-			-			-			-			-			-			-			21			3
Liabilities of
consolidated VIEs:
VIE notes			1,267			-			(44)			-			-			9			-			(78)			(631)			-			-			523			(45)
Total liabilities		$	1,531		$	16		$	(26)		$	-		$	4		$	9		$	-		$	(94)		$	(631)		$	-		$	-		$	809		$	(20)
_______________
(1) - Transferred in and out at the end of the period.

																																						Change in
																																						Unrealized
																																						(Gains)
																																						Losses for
																																						the Period
																																						Included in
								Unrealized																														Earnings for
								(Gains) /			Unrealized			Foreign																								Liabilities
								Losses			(Gains) /			Exchange																								still held
		Balance,			Realized			Included			Losses			Recognized															Transfers			Transfers						as of
		Beginning			(Gains) /			in			Included			in OCI or															into			out of			Ending			June 30,
In millions		of Year			Losses			Earnings			in OCI			Earnings			Purchases			Issuances			Settlements			Sales			Level 3 (1)			Level 3 (1)			Balance			2015
Liabilities:
Medium-term notes		$	197		$	-		$	(15)		$	-		$	(16)		$	-		$	-		$	-		$	-		$	-		$	-		$	166		$	(31)
Credit derivatives, net			244			12			(100)			-			-			-			-			(12)			-			-			-			144			(88)
Other derivatives, net			24			-			(3)			-			-			-			-			-			-			-			-			21			(3)
Liabilities of
consolidated VIEs:
VIE notes			735			-			21			-			-			695			-			(77)			-			-			-			1,374			21
Total liabilities		$	1,200		$	12		$	(97)		$	-		$	(16)		$	695		$	-		$	(89)		$	-		$	-		$	-		$	1,705		$	(101)
_______________
(1) - Transferred in and out at the end of the period.

Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities

			Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
						Change in						Change in
						Unrealized						Unrealized
						Gains (Losses)						Gains (Losses)
						for the						for the
						Period Included						Period Included
						in Earnings						in Earnings
						for Assets						for Assets
						and						and
			Total Gains			Liabilities still			Total Gains			Liabilities still
			(Losses)			held as of			(Losses)			held as of
			Included			June 30,			Included			June 30,
In millions			in Earnings			2016			in Earnings			2015
Revenues:
	Unrealized gains (losses) on
	insured derivatives		$	(5)		$	(5)		$	63		$	53
	Realized gains (losses) and other
	settlements on insured derivatives			(2)			-			(3)			-
	Net gains (losses) on financial instruments
	at fair value and foreign exchange			2			2			14			14
	Revenues of consolidated VIEs:
	Net gains (losses) on financial instruments
	at fair value and foreign exchange			13			13			(15)			(14)
Total			$	8		$	10		$	59		$	53

			Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
						Change in						Change in
						Unrealized						Unrealized
						Gains (Losses)						Gains (Losses)
						for the						for the
						Period Included						Period Included
						in Earnings						in Earnings
						for Assets						for Assets
						and						and
			Total Gains			Liabilities still			Total Gains			Liabilities still
			(Losses)			held as of			(Losses)			held as of
			Included			June 30,			Included			June 30,
In millions			in Earnings			2016			in Earnings			2015
Revenues:
	Unrealized gains (losses) on
	insured derivatives		$	(19)		$	(22)		$	100		$	88
	Realized gains (losses) and other
	settlements on insured derivatives			(16)			-			(12)			-
	Net gains (losses) on financial instruments
	at fair value and foreign exchange			(4)			(4)			32			34
	Net investment losses related to
	other-than-temporary impairments			(1)			-			-			-
	Revenues of consolidated VIEs:
	Net gains (losses) on financial instruments
	at fair value and foreign exchange			7			19			(11)			(11)
Total			$	(33)		$	(7)		$	109		$	111

Changes In Fair Value Included In The Company's Consolidated Statements Of Operations

			Three Months Ended June 30,						Six Months Ended June 30,
In millions			2016			2015			2016			2015
Investments carried at fair value(1)			$	3		$	-		$	6		$	1
Fixed-maturity securities held at fair value-VIE(2)				(13)			(55)			(97)			(73)
Loans receivable at fair value:
	Residential mortgage loans(2)			(70)			(54)			(140)			(113)
Loan repurchase commitments(2)				2			3			5			9
Medium-term notes(1)				4			13			-			31
Variable interest entity notes (2)				71			72			238			162
___________
(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations.
(2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations.

Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding

			As of June 30, 2016										As of December 31, 2015
			Contractual									Contractual
			Outstanding			Fair						Outstanding			Fair
In millions			Principal			Value			Difference			Principal			Value			Difference
Loans receivable at fair value:
	Residential mortgage loans		$	1,130		$	1,022		$	108		$	1,260		$	1,149		$	111
	Residential mortgage loans (90 days or more past due)			159			23			136			177			36			141
	Other loans			-			-			-			107			107			-
	Other loans (90 days or more past due)			147			147			-			75			-			75
Total loans receivable at fair value			$	1,436		$	1,192		$	244		$	1,619		$	1,292		$	327
Variable interest entity notes			$	2,656		$	1,503		$	1,153		$	3,663		$	2,362		$	1,301
Medium-term notes			$	222		$	161		$	61		$	217		$	161		$	56

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