Given the relatively high level of volatility in spreads, including our own CDS spread, for our derivative transactions and  VIE debt, the sensitivities presented above are higher than our longer term historical experience.  The range of a 50% tightening  and widening was determined based on our current CDS spread and most recent experience. We analyzed our currency exposure as of  December 31, 2012 by identifying investments in our investment portfolio that  are denominated in currencies other than the U.S. dollar . As part of our analysis, our investment portfolio foreign currency  exposures were measured, generally assuming a 10% decrease in currency exchange rates compared to the U.S. dollar . With all  other factors remaining constant, we estimated that such a decrease would reduce our investment portfolio held in foreign  currencies by $11.4 million as of December 31, 2012. At December 31, 2012, we held approximately $23.7 million of investments denominated in Euros.  The value of the Euro  against the U.S. dollar strengthened from  1.29 at December 31, 2011, to 1.32 at December 31, 2012. At December 31, 2012, we  held approximately $56.4 million of investments denominated in Japanese  Yen. The value of the Yen against the U.S. dollar  weakened from 0.013 at December 31, 2011, to 0.0115 at December 31, 2012. At December 31, 2012, the market value and cost of the equity securities in our investment portfolio were  $265.9 million  and $233.6 million, respectively. Included in the market value and cost of our equity securities is  $153.7 million and $145.3  million, respectively, classified as trading securities. Exposure to changes in equity market prices can be estimated by assessing  potential changes in market values on our equity investments resulting from a hypothetical broad-based decline in equity  market prices of 10%. With all other factors remaining constant, we estimated that such a decrease would reduce our investment  portfolio held in equity investments by  $26.6 million as of December 31, 2012. Equity Market Price Foreign Exchange Rate Risk Non-Corporate CDO related (1) ($ in millions) Corporate CDOs ($ in millions) Weighted average credit spread. . . . . . . . . . . . . . . . . 0.54% Fair value of net assets. . . . . . . . . . . . . . . . . . . . . . . . $ (2.8) Increase/(Decrease) in Fair Value Asset based on: 10% tightening of CDO credit spreads 0% change in CDO credit spreads 10% widening of CDO credit spreads 50% tightening of Radian Group’s CDS spread. . . . . $ (13.9) $ (17.0) $ (20.1) 0 basis points change in Radian Group’s CDS spread 0.4 — (0.6) 50% widening of Radian Group’s CDS spread . . . . . . 1.7 1.5 1.2 _______________________ Weighted average credit spread. . . . . . . . . . . . . . . . . 2.02% Fair value of net liabilities . . . . . . . . . . . . . . . . . . . . . $ 173.2 Increase/(Decrease) in Fair Value Liability based on: 10% tightening of CDO credit spreads 0% change in CDO credit spreads 10% widening of CDO credit spreads 50% tightening of Radian Group’s CDS spread. . . . . $ 72.1 $ 97.3 $ 118.6 0 basis points change in Radian Group’s CDS spread (18.7) — 15.2 50% widening of Radian Group’s CDS spread . . . . . . (58.7) (44.6) (33.0) ___________________ (1) Includes TruPs, CDOs of CMBS and other non-corporate CDOs. 158