Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended  December 31,  2012: (In millions) Beginning Balance at January 1,  2012 Realized and Unrealized Gains (Losses) Recorded in Earnings (1) Purchases Sales Issuances  Settlements Transfers  Into (Out of) Level III (2) Ending Balance at December 31,  2012 Investments: State and municipal obligations . . . . . . . . . $ 62.5 $ (3.4) $ — $ — $ — $ 12.3 $ (27.8) $ 19.0 RMBS. . . . . . . . . . . . . 45.5 6.1 — — — 51.6 — — CMBS. . . . . . . . . . . . . 35.4 (11.4) — — — 24.0 — — CDO . . . . . . . . . . . . . . 5.5 0.8 — — — 6.3 — — Other ABS . . . . . . . . . 2.9 0.8 5.2 — — 4.6 (2.6) 1.7 Hybrid securities . . . . 4.8 0.1 0.1 4.9 — — (0.1) — Equity securities. . . . . 0.8 0.1 — 0.6 — — 0.7 1.0 Other investments. . . . 6.8 2.5 76.3 0.6 — 6.0 — 79.0 Total Level III Investments 164.2 (4.4) 81.6 6.1 — 104.8 (29.8) 100.7 NIMS derivative assets . . . 1.6 (0.3) 0.3 — — — — 1.6 Other assets . . . . . . . . . . . . 104.0 20.3 — — — 25.1 — 99.2 Total Level III Assets. . . . . $ 269.8 $ 15.6 $ 81.9 $ 6.1 $ — $ 129.9 $ (29.8) $ 201.5 Derivative liabilities, net. . $ 110.6 $ (143.7) $ — $ — $ — $ (0.6) $ — $ 254.9 VIE debt. . . . . . . . . . . . . . . 228.2 (115.3) — — — 234.6 — 108.9 Total Level III Liabilities, net . . . . . . . . . . . . . . . . . . . $ 338.8 $ (259.0) $ — $ — $ — $ 234.0 $ — $ 363.8 (2)  Transfers are recognized at the end of the period as the availability of market observed inputs change from period to  period.  At December 31, 2012, our total Level III assets were approximately 4.1% of total assets measured at fair value and total  Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on  Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as  Level III.  (1)  Includes unrealized gains and losses relating to assets and liabilities still held as of  December 31, 2012 as follows:  $1.4 million for investments, $9.5 million for other assets, $(189.7) million for derivative liabilities and $(16.0)  million for VIE debt. 203