The increase in derivative liabilities was due to a reduction in RAM's own non-performance risk. That means that RAM's financial condition has improved, so they are less likely to default on their obligations, so the market value of their obligation grew. The actual derivative liability decreased, but RAM's financial condition improved enough that the decrease in liability was more than offset by the increase in market value of their obligation.
Secondly, the three year contract with RSSL suggests that the run-off will be complete within three years. At that time the company will be dissolved, purchased by RSSL or another entity, or enter a different insurance business. Take your pick.
The Management Agreement was negotiated at arm's length and approved by a special committee of the independent directors of the Board of RAM. RSSL is a wholly owned subsidiary of Orpheus Group Ltd., a Bermuda exempted company in which the Chairman of RAM, Steven J. Tynan, has a beneficial interest.
I don't like to see the Losses/LAE going up to $6mm. Has been in $3 - $4mm range in recent quarters. It should and I was hoping to see this come down this quarter. Chewed up a lot of the benefit of the early debt terminations...
I couldn't see that they updated the quarterly supplement or RMBS/CDO exposure info. We should expect them to post this going forward right?