124 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF AEGON N.V.  NOTE 4 contracts is however not fully reflected in the sensitivities  because many of these liabilities are not measured at fair value.  Over time, the short-term reduction in net income due to rising  interest rates would be offset by higher net income in later  years, all else being equal. Therefore, rising interest rates are  not considered a long-term risk to the Group.  The sensitivity analysis reflects the assets and liabilities held  at year end. This does not necessarily reflect the risk exposure  during the year as significant events do not necessarily occur  on January 1. The sensitivity analysis in the table below shows an estimate of  the effect of a parallel shift in the risk free yield curves on net  income and shareholders’ equity. Increases in interest rates  have a negative effect on shareholders’ equity and net income  in the current year because it results in unrealized losses on  investments that are carried at fair value. The rising interest  rates would also cause the fair value of the available-for-sale  bond portfolio to decline and the level of unrealized gains would  become too low to support recoverability of the full deferred  tax asset triggering an allowance charge to income. The  offsetting economic gain on the insurance and investment  Parallel Movement of Yield Curve Estimated approximate effects  on net income Estimated approximate effects  on shareholders’ equity 2010 Shift up 100 basis points (77) (3,529) Shift down 100 basis points (142) 3,432 2009 Shift up 100 basis points (270) (3,820) Shift down 100 basis points (111) 3,463 CREDIT RISK  investment assets due to defaults and overall declines in the  capital markets. Further excessive defaults or other reductions  in the value of these securities and loans could have a  materially adverse effect on AEGON’s business, results of  operations and financial condition. The table that follows shows the Group’s maximum gross credit  exposure from investments (credit protection not taken into  account) in general account financial assets, as well as general  account derivatives and reinsurance assets. Please refer to note  48 and note 49 for further information on capital commitments  and contingencies and on collateral given, which may expose  the Group to credit risk. As premiums and deposits are received, these funds are  invested to pay for future policyholder obligations. For general  account products, AEGON typically bears the risk for investment  performance equalling the return of principal and interest.  AEGON is exposed to credit risk on its general account fixed- income portfolio (debt securities, mortgages and private  placements), OTC derivatives and reinsurance contracts. Some  issuers have defaulted on their financial obligations for various  reasons, including bankruptcy, lack of liquidity, downturns in the  economy, downturns in real estate values, operational failure  and fraud. In the current weak economic environment, AEGON  incurred significant investment impairments on AEGON’s 