Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) NIMS VIEs We consolidate all of the assets and liabilities associated with NIMS  VIEs, due to provisions in our contracts that allow  us to purchase assets of these VIEs and thus direct the activities that most significantly impact the economic performance of  each VIE. As the guarantor of either all or a significant portion of the debt issued by each NIMS  VIE, we have the obligation to  absorb losses that are significant to the  VIEs. As a result, we have also concluded that we are the primary beneficiary of these  VIEs. The consolidated NIMS assets are accounted for as derivatives and represent assets to be used to settle the obligation of  the VIEs. We elected the fair value option as it relates to the NIMS  VIE debt, and therefore, the consolidated NIMS  VIE debt is  recorded at fair value. Our  VIE debt includes amounts for which third parties do not have recourse to us.  In total, our net cash outflow related to NIMS during  2012 has been primarily composed of claim payments.  We have two  remaining NIMS transactions, which mature in December 2013 and May 2035, respectively . The following tables provide a  summary of our maximum exposure to losses and the financial impact on our consolidated balance sheets, our consolidated  statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our  consolidated NIMS VIEs: In September 2003, Radian Asset Assurance entered into a contingent capital transaction pursuant to which  three  custodial trusts issued an aggregate of  $150 million in CPS ($50 million by each custodial trust) to various holders. Radian  Group and its subsidiaries have purchased by tender of fer and privately negotiated transactions all of the face amount of the  CPS issued by the custodial trusts. Prior to our purchase of the CPS, our continued involvement with these  VIEs had included  the payment of a put premium representing the spread between the investment income of the custodial trusts and amounts  payable to CPS holders and other fees and expenses payable by the custodial trusts, which typically were not material.  We  eliminated the put premium associated with the purchased CPS in 2010. 212 (1)  The difference between the carrying amounts of the net asset/liability position and maximum exposure related to  VIEs  is primarily due to the difference between the face amount of the obligation and the recorded fair values, which  include an adjustment for our non-performance risk.  The maximum exposure is based on the net par amount of our  insured obligation as of the reporting date. December 31, (In thousands) 2012 2011 Balance Sheet: Derivative assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,585 $ 1,602 VIE debt—at fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . 9,875 9,450 Maximum exposure (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,061 18,515 Year Ended December 31, (In thousands) 2012 2011 2010 Statement of Operations: Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 528 $ 528 $ 364 Change in fair value of derivative instruments—loss . . . (279 ) (1,624 ) (861 ) Net (loss) gain on other financial instruments . . . . . . . . . (4,938 ) 4,420 (39,583 ) Net Cash Outflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,250 ) (119,137 ) (187,089 ) CPS