Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Text Block [Abstract]

Credit Derivatives Sold

$ in millions	As of December 31, 2023
		Notional Value
Credit Derivatives Sold	Weighted Average Remaining Expected Maturity	AAA		AA		A		BBB		Below Investment Grade			Total Notional		Fair Value Asset (Liability)
Insured swaps	13.3 Years	$	-	$	42	$	962	$	205	$	60		$	1,269	$	(1	)
Total fair value		$	-	$	-	$	-	$	-	$	(1	)			$	(1	)

$ in millions	As of December 31, 2022
		Notional Value
Credit Derivatives Sold	Weighted Average Remaining Expected Maturity	AAA		AA		A		BBB		Below Investment Grade		Total Notional		Fair Value Asset (Liability)
Insured swaps	13.7 Years	$	-	$	50	$	1,013	$	227	$	60	$	1,350	$	-
Total fair value		$	-	$	-	$	-	$	-	$	-			$	-

Total Fair Value Of Company's Derivative Assets And Liabilities By Instrument And Balance Sheet Location, Before Counterparty Netting

The following tables present the total fair value of the Company’s derivative assets and liabilities by instrument and balance sheet location, before counterparty netting, as of December 31, 2023 and 2022:

		December 31, 2023
In millions				Derivative Assets			Derivative Liabilities
		Notional
		Amount			Fair			Fair
Derivative Instruments		Outstanding		Balance Sheet Location	Value		Balance Sheet Location	Value
Not designated as hedging instruments:
	Insured swaps	$	1,269	Other assets	$	-	Derivative liabilities	$	(1	)
	Interest rate swaps		55	Other assets		-	Derivative liabilities		(1	)
	Currency swaps-VIE		39	Other assets-VIE		-	Derivative liabilities-VIE		(14	)
Total non-designated derivatives		$	1,363		$	-		$	(16	)

		December 31, 2022
In millions				Derivative Assets			Derivative Liabilities
		Notional
		Amount			Fair			Fair
Derivative Instruments		Outstanding		Balance Sheet Location	Value		Balance Sheet Location	Value
Not designated as hedging instruments:
	Insured swaps	$	1,350	Other assets	$	-	Derivative liabilities	$	-
	Interest rate swaps		380	Other assets		-	Derivative liabilities		(49	)
	Currency swaps-VIE		36	Other assets-VIE		-	Derivative liabilities-VIE		(6	)
Total non-designated derivatives		$	1,766		$	-		$	(55	)

The Company has elected to bifurcate the complex interest calculations embedded in certain MTNs into separate derivatives. The fair value of the bifurcate embedded derivatives is measured quarterly and in accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Company’s embedded derivative instruments is determined by the location of the related host contract, MTNs. The change in fair value of the Company's embedded derivatives is primarily driven by the redemption of their related MTNs. As of December 31, 2023 and 2022, the Company had embedded derivative assets of $1 million and embedded derivative liabilities of $3 million and $2 million, respectively.

MBIA Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 9: Derivative Instruments (continued)

Effect Of Derivative Instruments On Consolidated Statements Of Operations

The following table presents the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021:

In millions
Derivatives Not Designated		Years Ended December 31,
as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	2023			2022			2021
Insured swaps	Net gains (losses) on financial instruments at fair value and foreign exchange	$	-		$	1		$	-
Interest rate swaps	Net gains (losses) on financial instruments at fair value and foreign exchange		13			79			18
Currency swaps-VIE	Net gains (losses) on financial instruments at fair value and foreign exchange-VIE		(7	)		(15	)		3
Total		$	6		$	65		$	21