ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued 4. INVESTMENTS The composition of the fixed income securities, common stocks carried at fair value and short-term investments as of  December 31, 2004 follows (in thousands): Cost or Gross Gross Amortized Unrealized Unrealized Cost Appreciation Depreciation Fair Value Fixed income securities: Bonds United States government and  government agencies and authorities $1,400,338 $ 12,711 $ 50,037 $1,363,012 States, municipalities and political subdivisions 186,958 3,563 7,033 183,488 Foreign governments 336,777 7,633 — 344,410 All other corporate 554,541 75,731 15,552 614,720 Total fixed income securities 2,478,614 99,638 72,622 2,505,630 Common stocks, at fair value: Banks, trusts and insurance companies 524,056 157,337 17,763 663,630 Industrial, miscellaneous and all other 212,156 21,668 27,583 206,241 Total common stocks, at fair value 736,212 179,005 45,346 869,871 Short-term investments: United States government 6,072 — — 6,072 All other 207,331 — — 207,331 Total short-term investments 213,403 — — 213,403 Total $3,428,229 $278,643 $117,968 $3,588,904 The gross unrealized appreciation of $278.6 million and the gross unrealized depreciation of $118.0 million resulted principally from the change in value of U.S. and non-U.S. equities, the credit quality of fixed income securities and the current interest  rate environment.  53