(3)  Internally generated interest coverage ratio for each  TruPs bond equal to the gross interest collections on the  TruPs  collateral minus transaction expenses as a percentage of the sum of hedge payments and interest payable on the  TruPs  bond and securities senior to, or ranking equally with, the  TruPs bond. (4)  The transactions with a CDS Termination Date prior to the TruPs CDO Maturity Date provide for automatic annual one- year extensions (absent written notifications from our counterparty) until the  TruPs CDO Maturity Date. (5)  Pursuant to the terms of our CDS contracts covering these  TruPs bonds, we could be required to pay our counterparties  the outstanding par on our insured TruPs bond on the scheduled termination date of our CDS contract. For more  information regarding this potential liquidity risk, see “—Liquidity and Capital Resources.” Our insured CDO of CMBS transactions experienced mixed performance in 2012. During 2012, the average total  delinquencies in the collateral supporting our CDOs of CMBS increased with respect to two of our four CDO of CMBS  transactions, was unchanged with respect to one of our transactions and declined with respect to the other CDO of CMBS  transaction. Moreover, loss severities have been fairly stable across the CMBS backing these CDOs during 2012.  To date, we  have experienced insignificant interest shortfalls across some of the CMBS tranches that back our CDOs as a result of  reductions in the appraised value of properties that allow servicers to stop making advances for interest, as well as expenses  related to the liquidation of certain properties.  Although we project that future interest shortfalls will result in reductions of  premiums received, we also project that the amounts in all instances will eventually be repaid to us. Our maximum total  exposure to interest shortfalls on our CDO of CMBS transactions is limited to the $5.2 million of contractual premium payable  to us over the remaining life of the contracts.  We do not currently expect to pay net claims on our CDO of CMBS transactions. The following table provides information regarding attachment points, credit ratings, the underlying CMBS tranches in  the collateral pools, subordination and delinquencies in our directly insured CDOs of CMBS exposure as of  December 31,  2012: (1)  The “Attachment Point” is the percentage of losses in the collateral pool that must occur before we are obligated to pay  claims. The “Detachment Point” is the point where the percentage of losses reaches a level where we cease to have an  obligation to pay claims on additional losses. For example, a 7.0% attachment point on a $1 billion collateral pool means  that we are not obligated to pay claims until there are $70 million of losses and a 50% detachment point means that our  obligation to pay claims for losses ceases when the transaction reaches an aggregate of $500 million of losses. (2)  Represents the number of CMBS tranches that comprise the collateral pool for the applicable CDOs of CMBS transaction. (3)  The average subordination at the inception of our participation in the transaction. (4)  The average remaining subordination after giving ef fect to both amortization of principal and realized losses. (5)  Delinquencies reflect the average percentage (of total notional) of the CMBS collateral that is delinquent. CMBS 1 CMBS 2 CMBS 3 CMBS 4 Total Total Size of CDO Collateral Pool (in billions) . . . . . . . . . . $ 2.4 $ 1.9 $ 1.5 $ 1.0 $ 6.8 Net Par Outstanding (in millions) . . . . . . . . . . . . . . . . . . . . 598.5 450.0 352.5 430.0 1,831.0 Radian Attachment/Detachment Points (1) . . . . . . . . . . . . . 5.1% - 30% 6.8% - 30% 6.5% - 30% 7.0% - 50% Internal Credit Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AAA AAA AA BBB- Number of CMBS Tranches in CDO (2) . . . . . . . . . . . . . . . 30 27 30 40 127 Size of CMBS Tranches in CDO (in millions) . . . . . . . . . . 80.0 71.3 49.9 25.0 Original Subordination of CMBS Tranches (3) . . . . . . . . . . 20% 30% 13% 13% Average Remaining Subordination of CMBS  Tranches (4) December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23% 36% 17% 12% December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22% 36% 16% 13% Total Delinquencies (Average of Securitizations) (5) . . . . . December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7% 10.2% 6.2% 10.1% December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7% 9.3% 7.3% 10.0% 127