generally , we receive insured credit swap fees in quarterly installments over the life of the related swaps which is typically in the range of 5 to 7 years . the principal expenses of this line of business are its allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . it also incurs direct interest expense related to the financing of our consolidated credit fund purchased investments . we enter into our insured credit swaps with an intent that they remain outstanding for the entire term of the contract . these insured credit swaps are accounted for at fair value because they do not qualify for the financial guarantee scope exception under fas no . 133 ,  accounting for derivative instruments and certain hedging activities ,  as amended ( fas 133 ) . changes in the fair value of these contracts are required to be marked to market under the requirements of fas 133 and are recorded , together with the related fixed quarterly premium payments payable to us under the insured credit swaps , under the caption net insured credit swap revenue . since our insured credit swap transactions are not actively traded securities and have no observable market price , we utilize comprehensive internally developed models to estimate changes in fair value . we expect the fair values of these insured credit swaps to fluctuate primarily based on changes in credit spreads and the credit quality of the underlying referenced entities . when we hold these insured credit swaps for the entire term of the contract , the cumulative changes in fair value will net to zero at the end of the term , provided that we do not incur credit losses on the contract . in certain circumstances , we may agree with a counterparty to terminate an insured credit swap transaction prior to its maturity ( such as on request of the counterparty or for risk management purposes , such as in connection with a deterioration of the underlying portfolio ) and may experience realized gains or losses in connection with the early termination of such transactions . in our public finance line of business , we provide financial guaranty insurance policies guaranteeing the timely payment of interest and the ultimate payment of principal on municipal debt obligations . our principal revenues in this line of business are premiums earned on our financial guaranty insurance policies and its allocated portion of corporate-wide investment income . the principal expenses of this line of business include its allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . we also incur loss and loss adjustment expenses , related to the non-derivative exposure we insure , and policy acquisition costs , which are expenses that vary with and are 53 directly attributable to the generation of insurance premiums and are deferred and recognized over the period in which the related premiums are earned . typically , public finance premiums are received by us on an up front basis . however , they are recognized into income over the term of the underlying instrument . in our cdo asset management line of business , we focus on cdo origination , structuring and asset management . our principal revenues in this line of business are investment income , management fees , warehouse income , other credit swap revenue and premiums for credit swaps on insured equity tranches of unfunded synthetic cdos . also included is an allocated portion of corporate-wide investment income . the principal direct expenses are interest expense related to the cdo debt issued by us and the amortization of related capitalized debt issuance costs . this line of business also receives an allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . several of our cdos are consolidated in our financial statements because we have been determined to be the primary beneficiary under fin 46 ( r ) , consolidation of variable interest entities an interpretation of arb no . 51 analyses . see results of operationscdo asset managementsupplementary information for a discussion on the accounting issues associated with consolidation . our other line of business includes business in areas and markets in which we are no longer active . principal direct items are premiums earned , loss and loss adjustment expenses and policy acquisition costs . this line of business also was allocated a portion of investment income , interest expense and operating expenses in 2006 , 2005 and 2004. beginning in 2004 , expenses were not allocated to this line of business . we believe it is more meaningful to analyze our financial performance on an annual , rather than a quarterly , basis in order to give our lines of business flexibility to select only those opportunities that meet our risk-adjusted return expectations . we believe this maximizes our profitability and allows our lines of business to avoid unfavorable pricing , credit spreads and general market conditions that may occur in any particular quarter . furthermore , during any given year we enter into a limited number of transactions in each of our lines of business and do not set corporate goals based on closing a specified number of transactions in any particular quarter or year . the transactions in which we participate are often highly negotiated and often take a significant period of time from start to finish , up to one year in public finance and up to nine months for a cdo . accordingly , our financial performance can vary significantly from quarter to quarter and the operating results for any quarter are not indicative of results for any future period . additionally , management reviews our performance using a measure known as net economic income . management believes that analyzing net economic income enhances the understanding of our results of operations by highlighting income attributable to our ongoing operating performance . story_separator_special_tag the credit fund had net assets under management of $ 25.6 million as of december 31 , 2006 , of which we owned $ 17.0 million and third party investors owned the remaining $ 8.6 million . in addition to receiving a return on our investment in the credit fund , we are paid a management fee to select and manage the assets for the credit fund 's third party investors . although the credit fund is consolidated pursuant to the requirements of fin 46 ( r ) , we do not have the right to use the assets for general operations . see results of operationsstructured credit. results of operations summary of consolidated results the following describes our consolidated financial results for the years ended december 31 , 2006 , 2005 and 2004 and our financial condition as of december 31 , 2006 and 2005. in order to understand our consolidated financial results , we perform a detailed segment by segment analysis for our lines of business and therefore , to augment the segments discussion , the following consolidated discussion has been prepared to describe ( 1 ) revenue and expense items that are allocated to our four lines of business and ( 2 ) the results of our lines of business : structured credit , public finance , cdo asset management and other . the accounting policies of our lines of business are the same as those described in the summary of critical accounting policies and estimates above . our two financial guaranty insurance lines of business , structured credit and public finance , are presented as separate lines of business . items not directly 58 attributable are allocated to each operating line of business . allocated items consist of investment income from aca financial guaranty 's investment portfolio , realized gains and losses on that investment portfolio , interest expense on the corporate debt at the holding company level , all operating expenses , non-cdo related depreciation and amortization expenses and income taxes . income and expense items that are directly attributable to a business line are recorded as such . the company 's consolidated net income for 2006 was $ 58.7 million , or $ 1.89 per diluted share , as compared to $ 28.8 million , or $ 0.96 per diluted share , in 2005 , an increase of $ 29.9 million . the company 's consolidated net income for 2005 of $ 28.8 million , or $ 0.96 per diluted share , was an increase of $ 32.6 million compared to the company 's net loss of $ ( 3.8 ) million , or $ ( 0.61 ) per diluted share , in 2004. the following table summarizes the contribution of each line of business to net consolidated income for the years 2006 , 2005 and 2004 : replace_table_token_14_th structured credit . net income increased to $ 25.3 million in 2006 compared to $ 11.0 million in 2005 primarily as a result of an increase in the volume of credit swap transactions completed in prior periods and impact of premiums received on current year originations and the full-year effect of premiums originated over the course of 2005. the increase in revenues was partially offset by increased operating expenses attributable to a reallocation of internal resources , effective january 1 , 2006 , to support the growth in this line of business . the increase in 2005 net income for this line of business compared to 2004 was the result of increased insured credit swap premiums earned partially offset by a decrease in premiums earned on traditional financial guaranty insurance . this decrease in premiums was the result of our shift in focus from traditional financial guaranty insurance to the insurance of credit swaps in this line of business . public finance . net income increased to $ 10.7 million in 2006 compared to $ 8.9 million in 2005 primarily resulting from a higher level of refunding activity , which accelerates the earnings of up front premiums paid on the refunded transactions , and slightly lower loss and loss adjustment expenses . premiums earned from refundings were $ 9.4 million in 2006 , compared to $ 6.6 million in 2005. this increase was partially offset by increased operating expenses . the increase in 2005 net income for this line of business to $ 8.9 million compared to $ 7.1 million in 2004 was the result of lower loss and loss adjustment expenses and an increase in premiums earned . the increase in our non-specific reserve was a direct result of the increase in premiums earned and application of our non-specific reserve model , and represents management 's estimate of losses on our insured book of business . cdo asset management . net income increased to $ 21.4 million in 2006 compared to $ 10.5 million in 2005 primarily as a result of an increase in fee and other income attributable to increased assets under management . in 2006 , we increased assets under management by $ 5.8 billion for a total of $ 15.7 billion at year end . we also experienced improved returns on our equity investments in various cdos . these increases were partially offset by increased operating expenses . also , in 2005 , we had greater losses in our insured credit swap and other credit swap revenues when compared to 2006 related to the valuation of these contracts under fas 133. unrealized losses in 2006 for these items were $ 0.5 million in 2006 compared to $ 4.2 million in 2005. in 2005 , we also recognized a realized loss of $ 3.3 million in other credit swap revenues as a result of a credit event on a single credit swap . net income was relatively flat when comparing 2005 to 2004 , however , the drivers of each year 's results differed . we recognized increased 59 management fees in 2005 , while in 2004 , we recognized unrealized gains

liquidity and capital resources we are a holding company , and as such , have no direct operations of our own . our liquidity , both on a short-term basis ( for the next 12 months ) and a long-term basis ( beyond the next 12 months ) is dependent upon how much of our initial public offering proceeds we retain at the holding company level , the ability of our operating subsidiaries , which excludes our consolidated cdo entities , to pay dividends or make other payments to us , and our ability to incur indebtedness and otherwise access the capital markets . as of december 31 , 2006 , we held at our holding company approximately $ 36.9 million of the approximately $ 79.3 million in net proceeds from our initial public offering of common stock that was completed in november 2006. for further discussion regarding the balance of proceeds after december 31 , 2006 , see part ii , item 5 of this report . our principal liquidity requirement is the payment of interest on our debt and operating expenses . our outstanding indebtedness is described under indebtedness. we may also incur additional indebtedness in the future to fund acquisitions , working capital , growth in our business or for other general corporate purposes . we also may require liquidity to make periodic capital investments in our operating subsidiaries . we do not currently intend to pay dividends . in the ordinary course of our business , we evaluate our liquidity needs and capital resources in light of holding company expenses and debt-related expenses . based on the amount of dividends we expect to receive from our subsidiaries , existing cash , including the remaining proceeds from our initial public offering retained at our holding company , and availability under our revolving credit facility , management believes that we will have sufficient liquidity to satisfy our needs over the next 12 months .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we are a holding company , and as such , have no direct operations of our own . our liquidity , both on a short-term basis ( for the next 12 months ) and a long-term basis ( beyond the next 12 months ) is dependent upon how much of our initial public offering proceeds we retain at the holding company level , the ability of our operating subsidiaries , which excludes our consolidated cdo entities , to pay dividends or make other payments to us , and our ability to incur indebtedness and otherwise access the capital markets . as of december 31 , 2006 , we held at our holding company approximately $ 36.9 million of the approximately $ 79.3 million in net proceeds from our initial public offering of common stock that was completed in november 2006. for further discussion regarding the balance of proceeds after december 31 , 2006 , see part ii , item 5 of this report . our principal liquidity requirement is the payment of interest on our debt and operating expenses . our outstanding indebtedness is described under indebtedness. we may also incur additional indebtedness in the future to fund acquisitions , working capital , growth in our business or for other general corporate purposes . we also may require liquidity to make periodic capital investments in our operating subsidiaries . we do not currently intend to pay dividends . in the ordinary course of our business , we evaluate our liquidity needs and capital resources in light of holding company expenses and debt-related expenses . based on the amount of dividends we expect to receive from our subsidiaries , existing cash , including the remaining proceeds from our initial public offering retained at our holding company , and availability under our revolving credit facility , management believes that we will have sufficient liquidity to satisfy our needs over the next 12 months .
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 Suspicious Activity Report : generally , we receive insured credit swap fees in quarterly installments over the life of the related swaps which is typically in the range of 5 to 7 years . the principal expenses of this line of business are its allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . it also incurs direct interest expense related to the financing of our consolidated credit fund purchased investments . we enter into our insured credit swaps with an intent that they remain outstanding for the entire term of the contract . these insured credit swaps are accounted for at fair value because they do not qualify for the financial guarantee scope exception under fas no . 133 ,  accounting for derivative instruments and certain hedging activities ,  as amended ( fas 133 ) . changes in the fair value of these contracts are required to be marked to market under the requirements of fas 133 and are recorded , together with the related fixed quarterly premium payments payable to us under the insured credit swaps , under the caption net insured credit swap revenue . since our insured credit swap transactions are not actively traded securities and have no observable market price , we utilize comprehensive internally developed models to estimate changes in fair value . we expect the fair values of these insured credit swaps to fluctuate primarily based on changes in credit spreads and the credit quality of the underlying referenced entities . when we hold these insured credit swaps for the entire term of the contract , the cumulative changes in fair value will net to zero at the end of the term , provided that we do not incur credit losses on the contract . in certain circumstances , we may agree with a counterparty to terminate an insured credit swap transaction prior to its maturity ( such as on request of the counterparty or for risk management purposes , such as in connection with a deterioration of the underlying portfolio ) and may experience realized gains or losses in connection with the early termination of such transactions . in our public finance line of business , we provide financial guaranty insurance policies guaranteeing the timely payment of interest and the ultimate payment of principal on municipal debt obligations . our principal revenues in this line of business are premiums earned on our financial guaranty insurance policies and its allocated portion of corporate-wide investment income . the principal expenses of this line of business include its allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . we also incur loss and loss adjustment expenses , related to the non-derivative exposure we insure , and policy acquisition costs , which are expenses that vary with and are 53 directly attributable to the generation of insurance premiums and are deferred and recognized over the period in which the related premiums are earned . typically , public finance premiums are received by us on an up front basis . however , they are recognized into income over the term of the underlying instrument . in our cdo asset management line of business , we focus on cdo origination , structuring and asset management . our principal revenues in this line of business are investment income , management fees , warehouse income , other credit swap revenue and premiums for credit swaps on insured equity tranches of unfunded synthetic cdos . also included is an allocated portion of corporate-wide investment income . the principal direct expenses are interest expense related to the cdo debt issued by us and the amortization of related capitalized debt issuance costs . this line of business also receives an allocated portion of corporate-wide operating expenses , interest expense and depreciation and amortization . several of our cdos are consolidated in our financial statements because we have been determined to be the primary beneficiary under fin 46 ( r ) , consolidation of variable interest entities an interpretation of arb no . 51 analyses . see results of operationscdo asset managementsupplementary information for a discussion on the accounting issues associated with consolidation . our other line of business includes business in areas and markets in which we are no longer active . principal direct items are premiums earned , loss and loss adjustment expenses and policy acquisition costs . this line of business also was allocated a portion of investment income , interest expense and operating expenses in 2006 , 2005 and 2004. beginning in 2004 , expenses were not allocated to this line of business . we believe it is more meaningful to analyze our financial performance on an annual , rather than a quarterly , basis in order to give our lines of business flexibility to select only those opportunities that meet our risk-adjusted return expectations . we believe this maximizes our profitability and allows our lines of business to avoid unfavorable pricing , credit spreads and general market conditions that may occur in any particular quarter . furthermore , during any given year we enter into a limited number of transactions in each of our lines of business and do not set corporate goals based on closing a specified number of transactions in any particular quarter or year . the transactions in which we participate are often highly negotiated and often take a significant period of time from start to finish , up to one year in public finance and up to nine months for a cdo . accordingly , our financial performance can vary significantly from quarter to quarter and the operating results for any quarter are not indicative of results for any future period . additionally , management reviews our performance using a measure known as net economic income . management believes that analyzing net economic income enhances the understanding of our results of operations by highlighting income attributable to our ongoing operating performance . story_separator_special_tag the credit fund had net assets under management of $ 25.6 million as of december 31 , 2006 , of which we owned $ 17.0 million and third party investors owned the remaining $ 8.6 million . in addition to receiving a return on our investment in the credit fund , we are paid a management fee to select and manage the assets for the credit fund 's third party investors . although the credit fund is consolidated pursuant to the requirements of fin 46 ( r ) , we do not have the right to use the assets for general operations . see results of operationsstructured credit. results of operations summary of consolidated results the following describes our consolidated financial results for the years ended december 31 , 2006 , 2005 and 2004 and our financial condition as of december 31 , 2006 and 2005. in order to understand our consolidated financial results , we perform a detailed segment by segment analysis for our lines of business and therefore , to augment the segments discussion , the following consolidated discussion has been prepared to describe ( 1 ) revenue and expense items that are allocated to our four lines of business and ( 2 ) the results of our lines of business : structured credit , public finance , cdo asset management and other . the accounting policies of our lines of business are the same as those described in the summary of critical accounting policies and estimates above . our two financial guaranty insurance lines of business , structured credit and public finance , are presented as separate lines of business . items not directly 58 attributable are allocated to each operating line of business . allocated items consist of investment income from aca financial guaranty 's investment portfolio , realized gains and losses on that investment portfolio , interest expense on the corporate debt at the holding company level , all operating expenses , non-cdo related depreciation and amortization expenses and income taxes . income and expense items that are directly attributable to a business line are recorded as such . the company 's consolidated net income for 2006 was $ 58.7 million , or $ 1.89 per diluted share , as compared to $ 28.8 million , or $ 0.96 per diluted share , in 2005 , an increase of $ 29.9 million . the company 's consolidated net income for 2005 of $ 28.8 million , or $ 0.96 per diluted share , was an increase of $ 32.6 million compared to the company 's net loss of $ ( 3.8 ) million , or $ ( 0.61 ) per diluted share , in 2004. the following table summarizes the contribution of each line of business to net consolidated income for the years 2006 , 2005 and 2004 : replace_table_token_14_th structured credit . net income increased to $ 25.3 million in 2006 compared to $ 11.0 million in 2005 primarily as a result of an increase in the volume of credit swap transactions completed in prior periods and impact of premiums received on current year originations and the full-year effect of premiums originated over the course of 2005. the increase in revenues was partially offset by increased operating expenses attributable to a reallocation of internal resources , effective january 1 , 2006 , to support the growth in this line of business . the increase in 2005 net income for this line of business compared to 2004 was the result of increased insured credit swap premiums earned partially offset by a decrease in premiums earned on traditional financial guaranty insurance . this decrease in premiums was the result of our shift in focus from traditional financial guaranty insurance to the insurance of credit swaps in this line of business . public finance . net income increased to $ 10.7 million in 2006 compared to $ 8.9 million in 2005 primarily resulting from a higher level of refunding activity , which accelerates the earnings of up front premiums paid on the refunded transactions , and slightly lower loss and loss adjustment expenses . premiums earned from refundings were $ 9.4 million in 2006 , compared to $ 6.6 million in 2005. this increase was partially offset by increased operating expenses . the increase in 2005 net income for this line of business to $ 8.9 million compared to $ 7.1 million in 2004 was the result of lower loss and loss adjustment expenses and an increase in premiums earned . the increase in our non-specific reserve was a direct result of the increase in premiums earned and application of our non-specific reserve model , and represents management 's estimate of losses on our insured book of business . cdo asset management . net income increased to $ 21.4 million in 2006 compared to $ 10.5 million in 2005 primarily as a result of an increase in fee and other income attributable to increased assets under management . in 2006 , we increased assets under management by $ 5.8 billion for a total of $ 15.7 billion at year end . we also experienced improved returns on our equity investments in various cdos . these increases were partially offset by increased operating expenses . also , in 2005 , we had greater losses in our insured credit swap and other credit swap revenues when compared to 2006 related to the valuation of these contracts under fas 133. unrealized losses in 2006 for these items were $ 0.5 million in 2006 compared to $ 4.2 million in 2005. in 2005 , we also recognized a realized loss of $ 3.3 million in other credit swap revenues as a result of a credit event on a single credit swap . net income was relatively flat when comparing 2005 to 2004 , however , the drivers of each year 's results differed . we recognized increased 59 management fees in 2005 , while in 2004 , we recognized unrealized gains

