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## Notes to Consolidated Financial Statements - (Continued) 

## Radian Group Inc. 

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: 

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(1) Our largest concentrations of foreign government securities as of December 31, 2012 and 2011 were Japan ($56.4 million and $28.0 million fair value, respectively) and Germany ( $22.1 million and $42.6 million fair value, respectively). As of December 31, 2012 and 2011, nearly all of our foreign government securities were rated A or higher by a nationally recognized statistical rating organization. As of December 31, 2012 and 2011, our trading portfolio included no foreign sovereign or sub-sovereign securities of the six European countries (Portugal, Ireland, Italy , Greece, Spain and Hungary) whose sovereign and sub-sovereign obligations have been under particular stress due to economic uncertainty , potential restructuring and ratings downgrades or securities of any other countries under similar stress. 

For trading securities that were still held at December 31, 2012 and 2011, we had net gains during 2012 and 2011 associated with those securities in the amount of $29.8 million and $112.1 million, respectively. 

Net investment income consisted of: 

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