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

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2011: 

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(1) Includes unrealized gains relating to assets and liabilities still held as of December 31, 2011 as follows: $12.0 million for investments, $9.4 million for other assets, $579.1 million for derivative liabilities and $158.5 million for VIE debt. 

(2) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period. 

 At December 31, 2011, our total Level III assets approximated 4.9% of total assets measured at fair value and our total Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as Level III. 

Realized and unrealized gains and losses on investments and VIE debt included in Level III are generally recorded in net gains (losses) on other financial instruments. Realized and unrealized gains and losses on Level III derivative instruments are recorded in the change in fair value of derivative instruments. 

There were no investment transfers between Level I and Level II for the years ended December 31, 2012 or 2011. 

