(In millions) Fair Value December 31, 2012 (1) Valuation Technique Unobservable Input Range/ Weighted Average Level III Derivative Liabilities/VIEs: Corporate CDOs . . . . . . . . . . . . 6.0 Base correlation model Radian correlation to corporate index 85.0% Average credit spread <0.1% - 2.7% Own credit spread (2) 8.0% - 9.1% CDOs of CMBS. . . . . . . . . . . . . 76.3 Discounted cash flow Radian correlation to CMBS transaction index 72.0% - 85.0% Own credit spread (2) 8.0% - 9.1% TruPs CDOs and TruPs-related VIE liabilities. . . . . . . . . . . . . . . 12.7 Discounted cash flow Principal recovery 65.0% Principal recovery (stressed) 60.0% Probability of conditional liquidity payment 0.8% - 36.7% Own credit spread (2) 8.0% - 9.1% Other non-corporate CDOs and derivative transactions. . . . . . . . 171.8 Risk-based model Average life (in years) <1 - 20.0 Own credit spread (2) 8.0% - 9.1% NIMS VIE . . . . . . . . . . . . . . . . . 9.9 Discounted cash flow NIMS credit spread 43.7% Own credit spread (2) 8.5% - 10.9% (1)  Excludes certain assets and liabilities for which we do not develop quantitative unobservable inputs.  The fair value  estimates for these assets and liabilities are developed using third-party pricing information, generally without  adjustment. (2)  Represents the range of our CDS spread that a typical market participant might use in the valuation analysis based on  the remaining term of the investment. The significant unobservable inputs in the fair value measurement of our investment securities noted above include an  interest rate used to discount the projected cash flows and an expected loss assumption.  This expected loss assumption  generally represents the principal shortfall we expect on our security as a result of the obligor ’s failure to pay. In addition, our  other invested assets include a guaranteed investment contract for which the Counterparty’ s non-performance risk is considered  in the discount rate. Significant increases (decreases) in either the discount rates or loss estimates in isolation would result in a  lower (higher) fair value measurement. Changes in these assumptions are independent and may move in either similar or  opposite directions. The significant unobservable inputs used in the fair value measurement of our derivative assets, derivative liabilities and  VIE debt relate primarily to projected losses. In addition, when determining the fair value of our liabilities, we are required to  incorporate into the fair value of those liabilities an adjustment that reflects our own non-performance risk, if applicable, as  discussed below. Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 206