Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

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
		March 31,				(Weighted
In millions		2019		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable at fair value	$	206	Market prices adjusted for financial	Impact of financial guarantee(1)	-9% - 50% (8%)
				guarantees provided to VIE obligations
	Loan repurchase commitments		420	Discounted cash flow	Recovery rates(2)
					Breach rates(2)
Liabilities of consolidated VIEs:
	Variable interest entity notes		397	Market prices of VIE assets adjusted for	Impact of financial guarantee	0% - 65% (41%)
				financial guarantees provided
Credit derivative liabilities:
	CMBS		19	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		2018		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable 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	Impact of financial guarantee	0% - 63% (39%)
				adjusted for 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.

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		Counterparty
				for Identical		Observable		Unobservable		and Cash		Balance as of
				Assets		Inputs		Inputs		Collateral		March 31,
In millions				(Level 1)		(Level 2)		(Level 3)		Netting		2019
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	871	$	93	$	-	$	-	$	964
	State and municipal bonds				-		582		-		-		582
	Foreign governments				-		13		-		-		13
	Corporate obligations				-		1,689		-		-		1,689
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		229		-		-		229
		Residential mortgage-backed non-agency			-		26		-		-		26
		Commercial mortgage-backed			-		49		6		-		55
	Asset-backed securities:
		Collateralized debt obligations			-		113		-		-		113
		Other asset-backed			-		197		2		-		199
			Total fixed-maturity investments		871		2,991		8		-		3,870
Money market securities					-		-		-		-		91	(1)
Perpetual debt and equity securities					26		37		-		-		63
Fixed-income fund					-		-		-		-		75	(1)
Cash and cash equivalents					132		-		-		-		132
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives			-		1		-		-		1
				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant		Counterparty
				for Identical		Observable		Unobservable		and Cash		Balance as of
				Assets		Inputs		Inputs		Collateral		March 31,
In millions				(Level 1)		(Level 2)		(Level 3)		Netting		2019
Assets of consolidated VIEs:
	State and municipal bonds				-		707		-		-		707
	Corporate obligations				-		9		5		-		14
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		89		-		-		89
		Commercial mortgage-backed			-		33		-		-		33
	Asset-backed securities:
		Collateralized debt obligations			-		6		1		-		7
		Other asset-backed			-		11		-		-		11
	Cash				31		-		-		-		31
	Loans receivable at fair value:
		Residential loans receivable			-		-		206		-		206
	Loan repurchase commitments				-		-		420		-		420
	Other assets:
		Currency derivatives			-		-		14		-		14
		Other			-		-		15		-		15
Total assets				$	1,060	$	3,884	$	669	$	-	$	5,779
Liabilities:
Medium-term notes				$	-	$	-	$	106	$	-	$	106
Derivative liabilities:
	Insured derivatives:
		Credit derivatives			-		2		19		-		21
	Non-insured derivatives:
		Interest rate derivatives			-		172		-		(1)		171
		Other			-		-		7		-		7
Other liabilities:
	Other payable				-		-		3		-		3
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		928		397		-		1,325
Total liabilities				$	-	$	1,102	$	532	$	(1)	$	1,633
____________
(1) - 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)		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		54
	Asset-backed securities:
		Collateralized debt obligations			-		121		-		121
		Other asset-backed			-		181		3		184
			Total fixed-maturity investments		1,028		2,833		10		3,871
Money market securities					-		-		-		67	(1)
Perpetual debt and equity securities					23		35		-		58
Fixed-income fund					-		-		-		75	(1)
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		14
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		92		-		92
		Commercial mortgage-backed			-		34		-		34
	Asset-backed securities:
		Collateralized debt obligations			-		6		1		7
		Other asset-backed			-		10		-		10
	Cash				58		-		-		58
	Loans receivable at fair value:
		Residential loans receivable			-		-		172		172
	Loan repurchase commitments				-		-		418		418
	Other assets:
		Currency derivatives			-		-		17		17
		Other			-		-		14		14
Total assets				$	1,331	$	3,021	$	637	$	5,131
Liabilities:
Medium-term notes				$	-	$	-	$	102	$	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		5
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		114		366		480
Total liabilities				$	-	$	273	$	513	$	786
____________
(1) - 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		March 31,		March 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2019		2019
Assets:
	Other investments	$	-	$	-	$	1	$	1	$	1
Assets of consolidated VIEs:
	Investments held-to-maturity		-		-		948		948		890
Total assets		$	-	$	-	$	949	$	949	$	891
Liabilities:
	Long-term debt	$	-	$	1,165	$	-	$	1,165	$	2,284
	Medium-term notes		-		-		425		425		615
	Investment agreements		-		-		400		400		313
Liabilities of consolidated VIEs:
	Variable interest entity notes		-		352		948		1,300		1,233
Total liabilities		$	-	$	1,517	$	1,773	$	3,290	$	4,445
Financial Guarantees:
	Gross liability (recoverable)	$	-	$	-	$	1,027	$	1,027	$	(233)
	Ceded		-		-		69		69		30

		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

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 Three Months Ended March 31, 2019
																										Change in
																										Unrealized
																										Gains
																										(Losses) for
																										the Period
																										Included in
					Unrealized																					Earnings
					Gains /		Unrealized		Foreign																	for 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		March 31,
In millions	of Period		(Losses)		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)			Balance		2019
Assets:
Commercial
mortgage-backed	$	7	$	-	$	-	$	-	$	-	$	-	$	-	$	(1)	$	-	$	-	$	-	$		6	$	-
Other asset-backed		3		-		-		-		-		-		-		(1)		-		-		-			2		-
Assets of
consolidated VIEs:
Corporate obligations		5		-		-		-		-		-		-		-		-		-		-			5		-
Collateralized debt
obligations		1		-		-		-		-		-		-		-		-		-		-			1		-
Loans receivable-
residential		172		-		42		-		-		-		-		(8)		-		-		-			206		42
Loan repurchase
commitments		418		-		2		-		-		-		-		-		-		-		-			420		2
Currency
derivatives		17		-		(2)		-		(1)		-		-		-		-		-		-			14		(3)
Other		14		-		1		-		-		-		-		-		-		-		-			15		1
Total assets	$	637	$	-	$	43	$	-	$	(1)	$	-	$	-	$	(10)	$	-	$	-	$	-		$	669	$	42

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 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		March 31,
In millions	of Period		(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		-
Other asset-backed		5		-		-		-		-		2		-		(1)		(2)		-		-		4		-
Assets of
consolidated VIEs:
Corporate obligations		-		-		-		-		-		-		-		-		-		3		-		3		-
Commercial
mortgage-backed		6		-		-		-		-		-		-		-		-		-		-		6		-
Collateralized debt
obligations		1		-		-		-		-		-		-		-		-		-		-		1		-
Loans receivable-
residential		759		-		20		-		-		-		-		(42)		-		-		-		737		20
Loans receivable-
corporate		920		-		11		-		-		-		-		(6)		-		-		-		925		11
Loan repurchase commitments		407		-		-		-		-		-		-		-		-		-		-		407		-
Currency derivatives		19		-		(3)		-		(3)		-		-		-		-		-		-		13		(6)
Other		14		-		-		-		-		-		-		-		-		-		-		14		-
Total assets	$	2,140	$	-	$	28	$	-	$	(3)	$	2	$	-	$	(49)	$	(2)	$	3	$	(2)	$	2,117	$	25

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		March 31,
In millions	of Period		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2019
Liabilities:
Medium-term notes	$	102	$	-	$	10	$	(4)	$	(2)	$	-	$	-	$	-	$	-	$	-	$	-	$	106	$	7
Credit derivatives		33		-		(14)		-		-		-		-		-		-		-		-		19		(14)
Other derivatives		7		-		-		-		-		-		-		-		-		-		-		7		-
Other payable		5		-		1		-		-		-		-		(3)		-		-		-		3		1
Liabilities of
consolidated VIEs:
VIE notes		366		9		32		(7)		-		-		5		(8)		-		-		-		397		32
Total liabilities	$	513	$	9	$	29	$	(11)	$	(2)	$	-	$	5	$	(11)	$	-	$	-	$	-	$	532	$	26
_______________
(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		March 31,
In millions	of Period		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3(1)		Level 3(1)		Balance		2018
Liabilities:
Medium-term notes	$	115	$	-	$	-	$	25	$	6	$	-	$	-	$	-	$	-	$	-	$	-	$	146	$	6
Credit derivatives		63		19		(14)		-		-		-		-		(19)		-		-		-		49		(14)
Other derivatives		4		-		-		-		-		-		-		-		-		-		-		4		-
Other payable		7		-		2		-		-		-		-		(4)		-		-		-		5		2
Liabilities of
consolidated VIEs:
VIE notes		406		8		(3)		(8)		5		-		5		(13)		-		-		-		400		2
Total liabilities	$	595	$	27	$	(15)	$	17	$	11	$	-	$	5	$	(36)	$	-	$	-	$	-	$	604	$	(4)
_______________
(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

		Three Months Ended March 31, 2019				Three Months Ended March 31, 2018
				Change in				Change in
				Unrealized				Unrealized
				Gains (Losses)				Gains (Losses)
				for the				for the
				Period Included				Period Included
				in Earnings				in Earnings
				for Assets				for Assets
				and				and
		Total Gains		Liabilities still		Total Gains		Liabilities still
		(Losses)		held as of		(Losses)		held as of
		Included		March 31,		Included		March 31,
In millions		in Earnings		2019		in Earnings		2018
Revenues:
	Unrealized gains (losses) on
	insured derivatives	$	14	$	14	$	14	$	14
	Realized gains (losses) and other
	settlements on insured derivatives		-		-		(19)		-
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		(7)		(7)		(6)		(6)
	Other net realized gains (losses)		(1)		(1)		(2)		(2)
	Revenues of consolidated VIEs:
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		1		10		15		23
Total		$	7	$	16	$	2	$	29

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

		Three Months Ended March 31,
In millions		2019		2018
Investments carried at fair value(1)		$	6	$	(2)
Fixed-maturity securities held at fair value- VIE(2)			26		(6)
Loans receivable at fair value:
	Residential mortgage loans(2)		34		(21)
	Other loans(2)		-		11
Loan repurchase commitments(2)			2		-
Medium-term notes(1)			(7)		(6)
Other liabilities(3)			(1)		(2)
Variable interest entity notes (2)			84		27
_____________
(1) - Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations.
(2) - Reported within "Net gains (losses) of 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 March 31, 2019							As of December 31, 2018
		Contractual						Contractual
		Outstanding		Fair				Outstanding		Fair
In millions		Principal		Value		Difference		Principal		Value		Difference
Loans receivable at fair value:
	Residential mortgage loans	$	165	$	165	$	-	$	168	$	164	$	4
	Residential mortgage loans (90 days or more past due)		153		41		112		153		8		145
Total loans receivable and other instruments at fair value		$	318	$	206	$	112	$	321	$	172	$	149
Variable interest entity notes		$	1,292	$	1,325	$	(33)	$	1,295	$	480	$	815
Medium-term notes		$	115	$	106	$	9	$	114	$	102	$	12