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Net realized and unrealized gains (losses) on investments consisted of: 

## Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 

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 At December 31, 2010, we had gross unrealized losses, related to state and municipal obligations, that primarily represented our interests in certain bonds held in our available for sale portfolio that were issued as part of securitizations collateralized by the Master Settlement Agreement among certain domestic tobacco manufacturers and 46 states and certain territories. During the second quarter of 201 1, we sold all of our interests in these bonds, realizing a loss on the sale of $53.7 million on proceeds received of $94.3 million. Although we expected the present value of cash flows ultimately to be collected from each security to be suf ficient to recover our amortized cost basis, we concluded that the risk profile of these bonds no longer suited our current portfolio objectives, and as a result, changed our prior intent to hold these bonds until maturity and instead disposed of these securities during the second quarter of 201 1. 

For the years ended December 31, 2012, 2011 and 2010, we did not sell or transfer any fixed-maturity investments classified as held to maturity . For the years ended December 31, 2012 and 2011, we did not transfer any securities from the available for sale or trading categories. During 2010, we recorded $3.1 million in gains on securities transferred from the available for sale category into the trading category . 

The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows: 

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