Our international sovereign and sub-sovereign (collectively , “Sovereign”) net par exposure declined 67% from $522.5  million at December 31, 2011 to $171.8 million at December 31, 2012, primarily due to the  Assured Transaction and the  settlement of our exposure to insured sovereign indebtedness of Greece (consisting of a payment of $23.5 million to settle our  remaining exposure) that occurred during the third quarter of 2012, partially of fset by a reclassification of certain international  indebtedness as sovereign exposure that occurred in 2012. Our net claim liability to sovereign exposures as of December 31,  2012 was $9.0 million, all of which is related to Spain. Substantially all of our sovereign exposure related to Spain is to an  infrastructure project for which current payments are being made due to the backing of the province of  Valencia, which has  requested financial assistance from the Spanish government under a program to assist regions in financial distress. Our  sovereign net par exposure to the Stressed European Countries was $91.4 million as of December 31, 2012, of which $47.5  million is related to Spain, $22.5 million is related to Hungary , $20.5 million is related to Italy and $0.9 million is related to  Portugal, with no such exposure to Ireland.  As discussed above, our sovereign exposure to Greece was settled in full in the third  quarter of 2012 and, as a result, our net par sovereign exposure to Greece has been reduced to zero.  In addition to our Sovereign net par exposure, Sovereign obligations represent approximately 0.8% of the collateral in our  insured portfolio of corporate CDOs, including 0.1% or less to each of Spain and Hungary , the only Stressed European  Countries included within the collateral in our insured portfolio of corporate CDOs. (1)  Includes one CDO comprised of Corporate CDOs with net par outstanding of $31.5 million.  This transaction is the only  CDO comprised of other CDOs in our directly insured financial guaranty portfolio. The following table shows the distribution of our CDO net par outstanding as of  December 31, 2012: As of December 31, 2012 Asset Class Total Exposure (Net Par) % of CDO Net Par Outstanding % of Total Net Par Outstanding (In billions) Direct CDOs: Corporate CDOs (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13.8 78.9% 40.9% CDOs of commercial mortgage-backed securities (“CMBS”). . . 1.8 10.3 5.3 TruPs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 6.3 3.3 CDOs of collateralized loan obligations (“CLO”) (2). . . . . . . . . 0.6 3.4 1.8 Total Direct CDOs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3 98.9 51.3 Assumed CDOs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 1.1 0.6 Total CDOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17.5 100.0% 51.9% (2)  Consists of two second-to-pay CLOs with net par outstanding of $541.5 million and internal ratings of  A+ to BB+ that are  both scheduled to mature in 2018 and one directly insured CLO with net par outstanding of $8.1 million that is rated  AAA. 120  ___________________