Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from [Mike Zuranski] of Credit Suisse. Please go ahead.
Mike Zuranski - Credit Suisse
On underwriting are the homeowner premiums from Florida coming from an MD agreements and I guess what we think about Florida exposure ramping up given Bart Hedges prepared remarks. I have a couple of other questions too.
Bart Hedges
The homeowners account is traditional contract with an insurance company and the State of Florida.
Mike Zuranski - Credit Suisse
Going forward, I guess you guys were thinking Florida is going to continue being a significant source of premiums?
Len Goldberg
Mike as Bart mentioned, we had done a similar transaction a few years back, which turned out to be quite successful for us and we think we’ve learned a bit about the Florida market. I think we were able to use our knowledge to create what was a very good deal. I think for the client and for us.
Mike Zuranski - Credit Suisse
On the investment portfolio, I know the big exposure is Ford debt, which I assume is yielding double-digit returns in terms of the interest payment. I guess all in, can you guys give us a sense for what the fixed income portfolio the lock in yields off?
David Einhorn
Yes. This is David. I don't know that we've really ever calculated it that way. I think when we were buying debt portfolio between October and March and so forth. I don't know what the aggregate was, but I suspect that the average was really quite substantial.
Since then there has been substantial capital gain out of the portfolio on unrealized capital gain. I'm sure the yields are lot less to maturity than the prices that we paid. Although I would imagine that they would still be well in the double-digits, even with the appreciation.
Mike Zuranski - Credit Suisse
In duration wise, you guys look in to whole year the fixed income assets, most likely?
Bart Hedges
No, we look at each asset on its own and there are some that we'll sell and there are some that we'll keep. Some of them won't be even turn out to be either because some of the situations in the portfolio probably aren't going to repay at maturity. They weren't bought on that basis. They were bought some of them more as workouts and as existing our future bankruptcies, where we may windup receiving equity or other types of securities.
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