Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of  the dates indicated: (1)  Our largest concentrations of foreign government securities as of  December 31, 2012 and 2011 were Japan ($56.4 million  and $28.0 million fair value, respectively) and Germany ( $22.1 million and $42.6 million fair value, respectively). As of  December 31, 2012 and 2011, nearly all of our foreign government securities were rated  A or higher by a nationally  recognized statistical rating organization. As of December 31, 2012 and 2011, our trading portfolio included no foreign  sovereign or sub-sovereign securities of the six European countries (Portugal, Ireland, Italy , Greece, Spain and Hungary)  whose sovereign and sub-sovereign obligations have been under particular stress due to economic uncertainty , potential  restructuring and ratings downgrades or securities of any other countries under similar stress.  For trading securities that were still held at  December 31, 2012 and 2011, we had net gains during 2012 and 2011  associated with those securities in the amount of  $29.8 million and $112.1 million, respectively.  215 Net investment income consisted of:  December 31, (In thousands) 2012 2011 Trading securities: U.S. government and agency securities . . . . . . . . . . . . . . $ 428,519 $ 710,006 State and municipal obligations . . . . . . . . . . . . . . . . . . . . 669,975 964,748 Corporate bonds and notes . . . . . . . . . . . . . . . . . . . . . . . . 1,357,175 683,864 RMBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663,307 928,887 CMBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,294 224,180 CDO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,467 Other ABS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,102 98,729 Foreign government securities (1) . . . . . . . . . . . . . . . . . . 117,686 102,851 Hybrid securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,944 346,338 Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,722 140,764 Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898 5,225 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,094,622 $ 4,211,059 ______________________ Year Ended December 31, (In thousands) 2012 2011 2010 Investment income: Fixed-maturities. . . . . . . . . . . . . . . . . $ 106,418 $ 155,183 $ 174,204 Equity securities. . . . . . . . . . . . . . . . . 10,136 11,559 7,623 Short-term investments . . . . . . . . . . . 345 611 1,576 Other. . . . . . . . . . . . . . . . . . . . . . . . . . 5,261 4,017 2,756 Gross investment income . . . . . . . . . . . . . 122,160 171,370 186,159 Investment expenses . . . . . . . . . . . . . . . . . (7,823) (7,850) (7,399) Net investment income . . . . . . . . . . . . . . . $ 114,337 $ 163,520 $ 178,760