Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value. We are responsible for the determination of the value of all investments carried at fair value and the supporting  methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service  providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and  assumptions for various asset classes and individual securities.  We perform monthly quantitative and qualitative analysis on the  prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes:  (i) a review of the methodology used by third party pricing services; (ii) a comparison of pricing services’  valuations to other  independent sources; (iii) a review of month to month price fluctuations; and (iv) a comparison of actual purchase and sale  transactions with valuations received from third parties.  These processes are designed to ensure that our investment values are  accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the  assumptions are reasonable and consistent with the objective of determining fair value.  U.S. government and agency securities —The fair value of U.S. government and agency securities is estimated using  observed market transactions, including broker -dealer quotes and actual trade activity as a basis for valuation. U.S. government  and agency securities are categorized in either Level I or Level II of the fair value hierarchy . State and municipal obligations —The fair value of state and municipal obligations is estimated using recent transaction  activity, including market and market-like observations. Evaluation models are used, which incorporate bond structure, yield  curve, credit spreads and other factors.  These securities are generally categorized in Level II of the fair value hierarchy or in  Level III when market-based transaction activity is unavailable. Money market instruments —The fair value of money market instruments is based on daily prices, which are published  and available to all potential investors and market participants.  As such, these securities are categorized in Level I of the fair  value hierarchy. Corporate bonds and notes —The fair value of corporate bonds and notes is estimated using recent transaction activity ,  including market and market-like observations. Spread models are used that incorporate issuer and structure characteristics,  such as credit risk and early redemption features, where applicable.  These securities are generally categorized in Level II of the  fair value hierarchy or in Level III when market-based transaction activity is unavailable. RMBS —The fair value of RMBS is estimated based on prices of comparable securities and spreads and observable  prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when  market-based transaction activity is unavailable.  The fair value of the Level III securities is generally estimated by discounting  estimated future cash flows.  CMBS —The fair value of CMBS is estimated based on prices of comparable securities and spreads and observable  prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when  market-based transaction activity is unavailable.  The fair value of the Level III securities is generally estimated by discounting  estimated future cash flows. CDO —These securities are categorized in Level III of the fair value hierarchy . The fair value of the Level III securities is  generally estimated by discounting estimated future cash flows. Other ABS —The fair value of other  ABS is estimated based on prices of comparable securities and spreads and  observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III  when market-based transaction activity is unavailable.  The fair value of the Level III securities is generally estimated by  discounting estimated future cash flows. Foreign government securities —The fair value of foreign government securities is estimated using observed market  yields used to create a maturity curve and observed credit spreads from market makers and broker -dealers. These securities are  categorized in Level II of the fair value hierarchy . 195 Investments