Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis

		Fair Value
		as of				Range
		December 31,				(Weighted
In millions		2018		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable and other instruments at fair value	$	172	Market prices adjusted for financial	Impact of financial guarantee(1)	-17% - 75% (7%)
				guarantees provided to VIE obligations
	Loan repurchase commitments		418	Discounted cash flow	Recovery rates(2)
					Breach rates(2)
Liabilities of consolidated VIEs:
	Variable interest entity notes		366	Market prices of VIE assets adjusted for	Impact of financial guarantee	0% - 63% (39%)
				financial guarantees provided
Credit derivative liabilities:
	CMBS		33	Direct Price Model	Nonperformance risk	54% - 54% (54%)
Other derivative liabilities			7	Discounted cash flow	Cash flows	$0 - $49 ($25)(3)
____________
(1) - Negative percentage represents financial guarantee policies in a receivable position.
(2) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
(3) - Midpoint of cash flows are used for the weighted average.

		Fair Value
		as of				Range
		December 31,				(Weighted
In millions		2017		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable and other instruments at fair value	$	1,679	Market prices adjusted for financial	Impact of financial guarantee(1)	-25% - 35% (-2%)
				guarantees provided to VIE obligations
				Multiples of EBITDA	Multiples(2)
	Loan repurchase commitments		407	Discounted cash flow	Recovery rates(3)
					Breach rates(3)
Liabilities of consolidated VIEs:
	Variable interest entity notes		406	Market prices of VIE assets	Impact of financial guarantee	0% - 60% (36%)
				adjusted for financial guarantees provided
Credit derivative liabilities:
	CMBS		63	Direct Price Model	Nonperformance risk	54% - 54% (54%)
Other derivative liabilities			4	Discounted cash flow	Cash flows	$0 - $49 ($25)(4)
	____________
	(1) - Negative percentage represents financial guarantee policies in a receivable position.
	(2) - Unobservable inputs are primarily based on comparable companies' EBITDA multiples.
	(3) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
	(4) - Midpoint of cash flows are used for the weighted average.

Company's Assets And Liabilities Measured At Fair Value On Recurring Basis

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable			Balance as of
				Assets		Inputs		Inputs			December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			2018
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	1,028	$	90	$	-		$	1,118
	State and municipal bonds				-		728		-			728
	Foreign governments				-		9		-			9
	Corporate obligations				-		1,410		-			1,410
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		219		-			219
		Residential mortgage-backed non-agency			-		28		-			28
		Commercial mortgage-backed			-		47		7	(1)		54
	Asset-backed securities:
		Collateralized debt obligations			-		121		-			121
		Other asset-backed			-		181		3	(1)		184
			Total fixed-maturity investments		1,028		2,833		10			3,871
Money market securities					-		-		-			67	(2)
Perpetual debt and equity securities					23		35		-			58
Fixed-income fund					-		-		-			75	(2)
Cash and cash equivalents					222		-		-			222
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives			-		2		-			2
				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable			Balance as of
				Assets		Inputs		Inputs			December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			2018
Assets of consolidated VIEs:
	Corporate obligations				-		9		5	(1)		14
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		92		-			92
		Commercial mortgage-backed			-		34		-			34
	Asset-backed securities:
		Collateralized debt obligations			-		6		1	(1)		7
		Other asset-backed			-		10		-			10
	Cash				58		-		-			58
	Loans receivable and other instruments at fair value:
		Residential loans receivable			-		-		172			172
	Loan repurchase commitments				-		-		418			418
	Other assets:
		Currency derivatives			-		-		17	(1)		17
		Other			-		-		14	(1)		14
Total assets				$	1,331	$	3,021	$	637		$	5,131
Liabilities:
Medium-term notes				$	-	$	-	$	102	(1)	$	102
Derivative liabilities:
	Insured derivatives:
		Credit derivatives			-		2		33			35
	Non-insured derivatives:
		Interest rate derivatives			-		157		-			157
		Other			-		-		7			7
Other liabilities:
	Other payable				-		-		5	(1)		5
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		114		366			480
Total liabilities				$	-	$	273	$	513		$	786
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.
(2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy.

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable			Balance as of
				Assets		Inputs		Inputs			December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			2017
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	1,256	$	96	$	-		$	1,352
	State and municipal bonds				-		858		-			858
	Foreign governments				-		10		-			10
	Corporate obligations				-		1,338		2	(1)		1,340
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		368		-			368
		Residential mortgage-backed non-agency			-		32		-			32
		Commercial mortgage-backed			-		60		7	(1)		67
	Asset-backed securities:
		Collateralized debt obligations			-		118		-			118
		Other asset-backed			-		178		5	(1)		183
			Total fixed-maturity investments		1,256		3,058		14			4,328
Money market securities					180		-		-			180
Perpetual debt and equity securities					26		37		-			63
Fixed-income fund					-		-		-			82	(2)
Cash and cash equivalents					122		-		-			122
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives			-		2		-			2
				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant
				for Identical		Observable		Unobservable			Balance as of
				Assets		Inputs		Inputs			December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			2017
Assets of consolidated VIEs:
	Corporate obligations				-		19		-			19
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		108		-			108
		Commercial mortgage-backed			-		30		6	(1)		36
	Asset-backed securities:
		Collateralized debt obligations			-		8		1	(1)		9
		Other asset-backed			-		10		-			10
	Cash				24		-		-			24
	Loans receivable and other instruments at fair value:
		Residential loans receivable			-		-		759			759
		Corporate loans receivable and other instruments			-		-		920			920
	Loan repurchase commitments				-		-		407			407
	Other assets:
		Currency derivatives			-		-		19	(1)		19
		Other			-		-		14	(1)		14
Total assets				$	1,608	$	3,272	$	2,140		$	7,102
Liabilities:
Medium-term notes				$	-	$	-	$	115	(1)	$	115
Derivative liabilities:
	Insured derivatives:
		Credit derivatives			-		2		63			65
	Non-insured derivatives:
		Interest rate derivatives			-		193		-			193
		Other			-		-		4			4
Other liabilities:
	Warrants				-		6		-			6
	Other payable				-		-		7	(1)		7
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		663		406			1,069
Total liabilities				$	-	$	864	$	595		$	1,459
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.
(2) - Investment that was measured at fair value by applying the net asset value per share practical expedient, and was required not to be classified in the fair value hierarchy.

Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet

		Fair Value Measurements at Reporting Date Using
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		December 31,		December 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2018		2018
Assets:
	Other investments	$	-	$	1	$	-	$	1	$	1
Assets of consolidated VIEs:
	Investments held-to-maturity		-		-		925		925		890
Total assets		$	-	$	1	$	925	$	926	$	891
Liabilities:
	Long-term debt	$	-	$	1,101	$	-	$	1,101	$	2,249
	Medium-term notes		-		-		422		422		620
	Investment agreements		-		-		388		388		311
Liabilities of consolidated VIEs:
	Variable interest entity notes		-		378		925		1,303		1,264
Total liabilities		$	-	$	1,479	$	1,735	$	3,214	$	4,444
Financial Guarantees:
	Gross liability (recoverable)	$	-	$	-	$	993	$	993	$	(43)
	Ceded		-		-		65		65		35

		Fair Value Measurements at Reporting Date Using
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		December 31,		December 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2017		2017
Assets:
	Other investments	$	-	$	2	$	-	$	2	$	2
Assets of consolidated VIEs:
	Investments held-to-maturity		-		-		916		916		890
Total assets		$	-	$	2	$	916	$	918	$	892
Liabilities:
	Long-term debt	$	-	$	1,002	$	-	$	1,002	$	2,121
	Medium-term notes		-		-		406		406		650
	Investment agreements		-		-		433		433		337
Liabilities of consolidated VIEs:
	Variable interest entity notes		-		352		916		1,268		1,220
Total liabilities		$	-	$	1,354	$	1,755	$	3,109	$	4,328
Financial Guarantees:
	Gross liability	$	-	$	-	$	1,785	$	1,785	$	1,220
	Ceded		-		-		61		61		39

Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2018
																									Change in
																									Unrealized
																									Gains
																									(Losses) for
																									the Period
																									Included in
					Unrealized																				Earnings for
					Gains /		Unrealized		Foreign																Assets
					(Losses)		Gains /		Exchange																still held
	Balance,		Realized		Included		(Losses)		Recognized										Transfers		Transfers				as of
	Beginning		Gains /		in		Included		in OCI or										into		out of		Ending		December 31,
In millions	of Year		(Losses)		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2018
Assets:
Corporate obligations	$	2	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	(2)	$	-	$	-
Commercial
mortgage-backed		7		-		-		-		-		-		-		-		-		7		(7)		7		-
Other asset-backed		5		-		-		(1)		-		5		-		(1)		(3)		-		(2)		3		-
Assets of
consolidated VIEs:
Corporate obligations		-		-		-		-		-		-		-		(1)		-		6		-		5		-
Commercial
mortgage-backed		6		-		-		-		-		-		-		-		-		-		(6)		-		-
Collateralized debt
obligations		1		-		-		-		-		-		-		-		-		-		-		1		-
Loans receivable-
residential		759		-		14		-		-		-		-		(114)		(487)		-		-		172		(22)
Loans receivable and other instruments-
corporate		920		-		11		-		-		-		-		(6)		(925)		-		-		-		-
Loan repurchase
commitments		407		-		11		-		-		-		-		-		-		-		-		418		11
Currency
derivatives		19		-		(2)		-		-		-		-		-		-		-		-		17		(2)
Other		14		-		-		-		-		-		-		-		-		-		-		14		-
Total assets	$	2,140	$	-	$	34	$	(1)	$	-	$	5	$	-	$	(122)	$	(1,415)	$	13	$	(17)	$	637	$	(13)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2017
																									Change in
																									Unrealized
																									Gains
																									(Losses) for
																									the Period
																									Included in
					Unrealized																				Earnings for
					Gains /		Unrealized		Foreign																Assets
					(Losses)		Gains /		Exchange																still held
	Balance,		Realized		Included		(Losses)		Recognized										Transfers		Transfers				as of
	Beginning		Gains /		in		Included		in OCI or										into		out of		Ending		December 31,
In millions	of Year		(Losses)		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2017
Assets:
Corporate obligations	$	2	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	-	$	-	$	(1)	$	2	$	-
Commercial
mortgage-backed		-		-		-		-		-		-		-		-		-		14		(7)		7		-
Collateralized debt
obligations		15		-		-		-		-		-		-		(7)		-		-		(8)		-		-
Other asset-backed		44		-		-		2		-		-		-		(41)		-		-		-		5		-
State and municipal
bonds		-		-		-		-		-		-		-		-		-		1		(1)		-		-
Assets of
consolidated VIEs:
Corporate obligations		-		-		-		-		-		-		-		(2)		-		6		(4)		-		-
Commercial
mortgage-backed		-		-		-		-		-		-		-		-		(3)		9		-		6		-
Collateralized debt
obligations		1		-		-		-		-		-		-		-		-		-		-		1		-
Other asset-backed		1		-		-		-		-		-		-		-		-		1		(2)		-		-
Loans receivable-
residential		916		-		79		-		-		-		-		(236)		-		-		-		759		79
Loans receivable and other instruments-
corporate		150		-		89		-		-		719		-		(38)		-		-		-		920		89
Loan repurchase
commitments		404		-		3		-		-		-		-		-		-		-		-		407		3
Currency derivatives		19		-		2		-		(2)		-		-		-		-		-		-		19		-
Other		-		-		(3)		-		-		17		-		-		-		-		-		14		(3)
Total assets	$	1,552	$	-	$	170	$	2	$	(2)	$	737	$	-	$	(324)	$	(3)	$	31	$	(23)	$	2,140	$	168

Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

																									Change in
																									Unrealized
																									(Gains)
																									Losses for
																									the Period
																									Included in
					Unrealized		Unrealized																		Earnings for
					(Gains) /		(Gains) /		Foreign																Liabilities
					Losses		Losses		Exchange																still held
	Balance,		Realized		Included		Included in		Recognized										Transfers		Transfers				as of
	Beginning		(Gains) /		in		Credit Risk		in OCI or										into		out of		Ending		December 31,
In millions	of Year		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2018
Liabilities:
Medium-term notes	$	115	$	(9)	$	(1)	$	55	$	(10)	$	-	$	-	$	(48)	$	-	$	-	$	-	$	102	$	(11)
Credit derivatives		63		56		(30)		-		-		-		-		(56)		-		-		-		33		(30)
Other derivatives		4		-		3		-		-		-		-		-		-		-		-		7		3
Other payable		7		-		1		-		-		-		-		(3)		-		-		-		5		1
Liabilities of
consolidated VIEs:
VIE notes		406		39		(30)		(20)		-		-		8		(37)		-		-		-		366		(30)
Total liabilities	$	595	$	86	$	(57)	$	35	$	(10)	$	-	$	8	$	(144)	$	-	$	-	$	-	$	513	$	(67)
_______________
(1) - Transferred in and out at the end of the period.

																									Change in
																									Unrealized
																									(Gains)
																									Losses for
																									the Period
																									Included in
					Unrealized																				Earnings for
					(Gains) /		Unrealized		Foreign																Liabilities
					Losses		(Gains) /		Exchange																still held
	Balance,		Realized		Included		Losses		Recognized										Transfers		Transfers				as of
	Beginning		(Gains) /		in		Included		in OCI or										into		out of		Ending		December 31,
In millions	of Year		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2017
Liabilities:
Medium-term notes	$	101	$	-	$	(1)	$	-	$	15	$	-	$	-	$	-	$	-	$	-	$	-	$	115	$	14
Credit derivatives		64		51		(1)		-		-		-		-		(51)		-		-		-		63		1
Other derivatives		20		-		18		-		-		-		-		(34)		-		-		-		4		18
Other payable		-		-		-		-		-		7		-		-		-		-		-		7		-
Liabilities of
consolidated VIEs:
VIE notes		476		-		37		-		-		-		-		(56)		(51)		-		-		406		37
Total liabilities	$	661	$	51	$	53	$	-	$	15	$	7	$	-	$	(141)	$	(51)	$	-	$	-	$	595	$	70
_______________
(1) - Transferred in and out at the end of the period.

Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities

								Change in Unrealized Gains (Losses)
								for the Period Included in Earnings
		Total Gains (Losses)						for Assets and Liabilities still
In millions		Included in Earnings						held as of December 31,
		2018		2017		2016		2018		2017		2016
Revenues:
	Unrealized gains (losses) on
	insured derivatives	$	30	$	1	$	21	$	30	$	(1)	$	13
	Realized gains (losses) and other
	settlements on insured derivatives		(56)		(51)		(43)		-		-		-
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		17		(32)		1		8		(32)		1
	Net investment losses related to
	other-than-temporary impairments		-		-		(1)		-		-		-
	Other net realized gains (losses)		(1)		-		-		(1)		-		-
	Revenues of consolidated VIEs:
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		25		131		14		17		131		32
Total		$	15	$	49	$	(8)	$	54	$	98	$	46

Changes In Fair Value Included In The Company's Consolidated Statements Of Operations

		Years Ended December 31,
In millions		2018		2017		2016
Investments carried at fair value(1)		$	(11)	$	8	$	7
Fixed-maturity securities held at fair value-VIE(2)			(25)		(22)		(124)
Loans receivable and other instruments at fair value:
	Residential mortgage loans(2)		(100)		(158)		(268)
	Corporate loans and other instruments(2)		11		52		-
Loan repurchase commitments(2)			12		3		8
Other assets-VIE(2)			-		(3)		-
Medium-term notes(1)			19		(14)		4
Other liabilities(3)			(2)		-		-
Variable interest entity notes (2)			118		230		383
___________
(1) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations.
(2) - Reported within "Net gains (losses) on financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations.
(3) - Reported within "Other net realized gains (losses)" on MBIA's consolidated statements of operations.

Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding

		As of December 31, 2018							As of December 31, 2017
		Contractual						Contractual
		Outstanding		Fair				Outstanding		Fair
In millions		Principal		Value		Difference		Principal		Value		Difference
Loans receivable and other instruments at fair value:
	Residential mortgage loans	$	168	$	164	$	4	$	732	$	727	$	5
	Residential mortgage loans (90 days or more past due)		153		8		145		170		32		138
	Corporate loans and other instruments (90 days
	or more past due)		-		-		-		1,394		920		474
Total loans receivable and other instruments at fair value		$	321	$	172	$	149	$	2,296	$	1,679	$	617
Variable interest entity notes		$	1,295	$	480	$	815	$	1,882	$	1,069	$	813
Medium-term notes		$	114	$	102	$	12	$	180	$	115	$	65