Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 6. VIEs Financial Guaranty Insurance Contracts As a result of the CDO Commutation Transactions described in Note 1, we have deconsolidated the CDO of  ABS VIE  and we have consolidated the LPVVIE that was formed upon execution of the CDO Commutation  Transactions. Also as part of  the CDO Commutation Transactions, the LPV entered into a CDS (the “Residual CDS”) with the Counterparty to provide for  payments to the Counterparty for future losses relating to the  Terminated TruPs Bonds. The LPV Initial Capital, together with  investment earnings (collectively, the “LPV Capital”), represent the only funds available to pay the Counterparty for amounts  due under the Residual CDS. Radian  Asset Assurance has no further obligation for claims related to the  Terminated TruPs  CDOs. The Residual CDS terminates concurrently with the  Terminated TruPs Bonds for which we had provided credit  protection and provides for payment to the Counterparty substantially in accordance with the terms of our original CDS  protection for the Terminated TruPs Bonds. In addition, pursuant to an agreement with the Counterparty , if any LPV Capital  amount is remaining following the maturity of the Residual CDS, Radian  Asset Assurance is entitled to these remaining funds. In continually assessing our involvement with VIEs, we consider certain events such as the VIE’s failure to meet certain  contractual conditions, such as performance tests and triggers, servicer termination events and events of default, that, should  they occur, may provide us with additional control rights over the  VIE for a limited number of our transactions.  The occurrence  of these events would cause us to reassess our initial determination of whether we are the primary beneficiary of a  VIE. In  addition, changes to its governance structure that would allow us to direct the activities of a  VIE or our acquisition of additional  financial interests in the VIE would also cause us to reassess our determination of whether we are the primary beneficiary of a  VIE. Certain of our financial guaranty contracts provide us with substantial control rights over the activities of  VIEs upon the  occurrence of default or other performance triggers described above.  Therefore, additional VIEs may be consolidated by us if  these events were to occur. Prior to the occurrence of these contingent conditions, another party (typically the collateral  manager, servicer or equity holder) involved with the transaction holds the power to manage the  VIE’s assets and to impact the  economic performance of the  VIE, without our ability to control or direct such powers. Our interests in VIEs for which we are not the primary beneficiary may be accounted for as insurance, reinsurance or  credit derivatives. For insurance and reinsurance contracts, we record reserves for losses and LAE, and for derivative interests,  we record cumulative changes in fair value as a derivative asset or liability .  The following relates to our consolidated and unconsolidated  VIEs.  The carrying value of our non-derivative financial guaranty liabilities consists of unearned premiums, premiums  receivable, deferred policy acquisition costs and reserve for losses and LAE as reported on our consolidated balance sheets.  Our ability to accurately estimate the fair value of our non-derivative financial guarantees is limited.  There are no  observable market data points as a result of the disruption in the credit markets and significant rating agency downgrades.  These factors have significantly limited our ability to write new financial guaranty business, except in limited circumstances.  We believe that in the absence of a principal market, our estimate of fair value described above in a hypothetical market  provides the most relevant information with respect to fair value estimates given the information currently available to us. Due  to the volume and geographic diversification of our financial guaranty exposures, in the future we may need to consider other  key variables that may influence the fair value estimates.  Variables not currently incorporated into our current fair value  estimate of non-derivative financial guarantees include the credit spreads of the underlying insured obligations, the underlying  ratings of those insured obligations and assumptions about current financial guaranty premium levels relative to the underlying  insured obligations’ credit spreads.  209