ANALOG DEVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (2) The Company has a master netting arrangement by counterparty with respect to derivative contracts.
As of October 29, 2011 and October 30, 2010, contracts in a liability position of $0.8 million in each year, were netted against contracts in an asset position in the consolidated balance sheets.
(3) Equal to the accreted notional value of the debt plus the fair value of the interest rate component of the longterm debt.
The fair value of the long-term debt as of October 29, 2011 and October 30, 2010 was $413.4 million and $416.3 million, respectively.
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash equivalents and short-term investments — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates.
Deferred compensation plan investments and other investments — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices.
Long-term debt — The fair value of long-term debt is based on quotes received from third-party banks.
Interest rate swap agreements — The fair value of interest rate swap agreements is based on quotes received from third-party banks.
These values represent the estimated amount the Company would receive or pay to terminate the agreements taking into consideration current interest rates as well as the creditworthiness of the counterparty.
Forward foreign currency exchange contracts — The estimated fair value of forward foreign currency exchange contracts, which includes derivatives that are accounted for as cash flow hedges and those that are not designated as cash flow hedges, is based on the estimated amount the Company would receive if it sold these agreements at the reporting date taking into consideration current interest rates as well as the creditworthiness of the counterparty for assets and the Company’s creditworthiness for liabilities.
Contingent consideration — The fair value of contingent consideration was estimated utilizing the income approach and is based upon significant inputs not observable in the market.
Changes in the fair value of the contingent consideration subsequent to the acquisition date that are primarily driven by assumptions pertaining to the achievement of the defined milestones will be recognized in operating income in the period of the estimated fair value change.
The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) for fiscal 2011:
## Table 0 ##
Financial Instruments Not Recorded at Fair Value on a Recurring Basis On April 4, 2011, the Company issued $375 million aggregate principal amount of 3.0% senior unsecured notes due April 15, 2016 (the 3.0% Notes) with semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing October 15, 2011.
The fair value of the 3.0% Notes as of October 29, 2011 was $392.8 million, based on quotes received from third-party banks.
market downturns.
Our lending guidelines are typically 65% or less loan-to-value ratios and a debt service coverage ratio of at least 1.5 times.
We analyze investments outside of these guidelines based on cash flow quality, tenancy and other factors.
The weighted average loan-to-value ratio at origination for new brick and mortar commercial mortgages, excluding Principal Global Investors segment mortgages, in our portfolio was 44% and 52% as of December 31, 2010 and 2009, respectively.
The debt service coverage ratio at loan inception for new brick and mortar commercial mortgages, excluding Principal Global Investors segment mortgages, in our portfolio was 3.5 and 2.0 times as of December 31, 2010 and 2009, respectively.
The weighted average loan-to-value ratio for loans held in our brick and mortar commercial mortgage portfolio, excluding Principal Global Investors segment mortgages, was 66% and 69% as of December 31, 2010 and 2009, respectively.
The debt service coverage ratio for loans held in our brick and mortar commercial mortgage portfolio, excluding Principal Global Investors segment mortgages, was 1.8 times as of both December 31, 2010 and 2009.
Our investment decisions and objectives are a function of the underlying risks and product profiles of each primary business operation.
In addition, we diversify our product portfolio offerings to include products that contain features that will protect us against fluctuations in interest rates.
Those features include adjustable crediting rates, policy surrender charges and market value adjustments on liquidations.
For further information on our management of interest rate risk, see Item 7A.
‘‘Quantitative and Qualitative Disclosures About Market Risk — Interest Rate Risk.
’’ Overall Composition of U. S.  Invested Assets As shown in the following table, the major categories of U. S.  invested assets are fixed maturities and commercial mortgage loans.
The remainder is invested in other investments, real estate, residential mortgage loans and equity securities.
In addition, policy loans are included in our invested assets.
The following discussion analyzes the composition of U. S.  invested assets, but excludes invested assets of the separate accounts.
## Table 1 ##
Fixed Maturities Fixed maturities consist of publicly traded and privately placed bonds, asset-backed securities, redeemable preferred stock and certain nonredeemable preferred stock.
Included in the privately placed category as of December 31, 2010 and 2009, were $8.7 billion and $7.4 billion, respectively, of securities subject to certain holding periods and resale restrictions pursuant to Rule 144A of the Securities Act of 1933.
Fixed maturities include trading portfolios that support investment strategies that involve the active and frequent purchase and sale of fixed maturities.
We held $274.9 million and $348.1 million of these trading securities as of December 31, 2010 and 2009, respectively.
Fixed maturities were diversified by category of issuer, as shown in the following table for the periods indicated.
## Table 2 ##
We believe that it is desirable to hold residential mortgage-backed pass-through securities due to their credit quality and liquidity as well as portfolio diversification characteristics.
Our portfolio is comprised of Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation pass-through securities.
In addition, our residential collateralized mortgage obligation portfolio offers structural features that allow cash flows to be matched to our liabilities.
CMBS provide varying levels of credit protection, diversification and reduced event risk depending on the securities owned and composition of the loan pool.
CMBS are predominantly comprised of large pool securitizations that are diverse by property type, borrower and geographic dispersion.
The risks to any CMBS deal are determined by the credit quality of the underlying loans and how those loans perform over time.
Another key risk is the vintage of the underlying loans and the state of the markets during a particular vintage.
In the CMBS market, there is a material difference in the outlook for the performance of loans originated in 2005 and earlier relative to loans originated in 2006 through 2008.
For loans originated prior to 2006, underwriting assumptions were more conservative regarding required debt service coverage and loan-to-value ratios.
For the 2006 through 2008 vintages, real estate values peaked and the underwriting expectations were that values would continue to increase, which makes those loan values more sensitive to market declines.
We purchase ABS to diversify the overall credit risks of the fixed maturities portfolio and to provide attractive returns.
The principal risks in holding ABS are structural and credit risks.
Structural risks include the security’s priority in the issuer’s capital structure, the adequacy of and ability to realize proceeds from the collateral and the potential for prepayments.
Credit risks involve issuer/servicer risk where collateral values can become impaired in the event of servicer credit deterioration.
Our ABS portfolio is diversified both by type of asset and by issuer.
We actively monitor holdings of ABS to ensure that the risk profile of each security improves or remains consistent.
Prepayments in the ABS portfolio are, in general, insensitive to changes in interest rates or are insulated from such changes by call protection features.
In the event that we are subject to prepayment risk, we monitor the factors that impact the level of prepayment and prepayment speed for those ABS.
In addition, we diversify the risks of ABS by holding a diverse class of securities, which limits our exposure to any one security.
The international exposure held in our U. S.  operation’s fixed maturities portfolio was 24% of total fixed maturities as of both December 31, 2010 and 2009.
It is comprised of corporate and foreign government fixed maturities.
The following table presents the carrying amount of our international exposure for our U. S.  operation’s fixed maturities portfolio for the periods indicated.
## Table 3 ##
(1) Includes exposure from 24 countries as of both December 31, 2010 and 2009.
All international fixed maturities held by our U. S.  operations are either denominated in U. S.  dollars or have been swapped into U. S.  dollar equivalents.
Our international investments are analyzed internally by country and industry credit investment professionals.
We control concentrations using issuer and country level exposure benchmarks, which are based on the credit quality of the issuer and the country.
Our investment policy limits total international fixed maturities investments and we are within those internal limits.
Exposure to Canada is not included in our international exposure.
As of December 31, 2010 and 2009, our investments in Canada totaled $1,680.3 million and $1,623.5 million, respectively.
Fixed Maturities Credit Concentrations.
One aspect of managing credit risk is through industry, issuer and asset class diversification.
Our credit concentrations are managed to established limits.
The exposure attributed to monoline bond and mortgage insurers from investments that are guaranteed by them is not included in the evaluation of our top ten
values.
The deterioration has resulted in an increase in delinquencies.
The following table represents our residential mortgage valuation allowance for the periods indicated.

<table><tr><td></td><td>Contingent   Consideration</td></tr><tr><td>Balance as of October 30, 2010</td><td>$—</td></tr><tr><td>Contingent consideration liability recorded</td><td>13,790</td></tr><tr><td>Fair value adjustment</td><td>183</td></tr><tr><td>Balance as of October 29, 2011</td><td>$13,973</td></tr></table>
<table><tr><td> </td><td colspan="2">December 31, 2010</td><td colspan="2"> December 31, 2009</td></tr><tr><td> </td><td> Carrying amount</td><td>% of total</td><td> Carrying amount</td><td> % of total</td></tr><tr><td> </td><td colspan="4"><i>($ in millions)</i> </td></tr><tr><td>Fixed maturities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Public</td><td>$31,956.6</td><td>53%</td><td>$30,952.5</td><td>52%</td></tr><tr><td>Private</td><td>14,329.8</td><td>24</td><td>13,533.4</td><td>23</td></tr><tr><td>Equity securities</td><td>424.1</td><td>1</td><td>388.8</td><td>1</td></tr><tr><td>Mortgage loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>9,599.6</td><td>16</td><td>10,121.8</td><td>17</td></tr><tr><td>Residential</td><td>877.5</td><td>1</td><td>1,128.7</td><td>2</td></tr><tr><td>Real estate held for sale</td><td>41.6</td><td>—</td><td>23.8</td><td>—</td></tr><tr><td>Real estate held for investment</td><td>1,010.7</td><td>2</td><td>998.4</td><td>2</td></tr><tr><td>Policy loans</td><td>879.7</td><td>1</td><td>881.3</td><td>1</td></tr><tr><td>Other investments</td><td>1,486.3</td><td>2</td><td>1,480.2</td><td>2</td></tr><tr><td>Total invested assets</td><td>60,605.9</td><td>100%</td><td>59,508.9</td><td>100%</td></tr><tr><td>Cash and cash equivalents</td><td>1,817.2</td><td></td><td>2,192.3</td><td></td></tr><tr><td>Total invested assets and cash</td><td>$62,423.1</td><td></td><td>$61,701.2</td><td></td></tr></table>
<table><tr><td> </td><td colspan="2">December 31, 2010</td><td colspan="2"> December 31, 2009</td></tr><tr><td> </td><td> Carrying amount</td><td>% of total</td><td> Carrying amount</td><td> % of total</td></tr><tr><td> </td><td colspan="4"><i>($ in millions)</i> </td></tr><tr><td>U.S. government and agencies</td><td>$929.1</td><td>2%</td><td>$781.9</td><td>2%</td></tr><tr><td>States and political subdivisions</td><td>2,826.9</td><td>6</td><td>2,218.2</td><td>5</td></tr><tr><td>Non-U.S. governments</td><td>424.2</td><td>1</td><td>462.4</td><td>1</td></tr><tr><td>Corporate — public</td><td>19,201.2</td><td>41</td><td>19,182.8</td><td>43</td></tr><tr><td>Corporate — private</td><td>12,065.1</td><td>26</td><td>11,604.7</td><td>26</td></tr><tr><td>Residential pass-through securities</td><td>3,379.5</td><td>7</td><td>3,367.7</td><td>7</td></tr><tr><td>Commercial mortgage-backed securities</td><td>3,847.3</td><td>9</td><td>3,602.9</td><td>8</td></tr><tr><td>Residential collateralized mortgage obligations</td><td>1,435.4</td><td>3</td><td>1,172.4</td><td>3</td></tr><tr><td>Asset-backed securities</td><td>2,177.7</td><td>5</td><td>2,092.9</td><td>5</td></tr><tr><td>Total fixed maturities</td><td>$46,286.4</td><td>100%</td><td>$44,485.9</td><td>100%</td></tr></table>
<table><tr><td> </td><td> December 31, 2010</td><td> December 31, 2009</td></tr><tr><td> </td><td colspan="2"><i>(in millions)</i> </td></tr><tr><td>European Union</td><td>$3,336.6</td><td>$3,594.4</td></tr><tr><td>United Kingdom</td><td>2,304.3</td><td>2,290.5</td></tr><tr><td>Australia</td><td>1,279.4</td><td>1,152.0</td></tr><tr><td>Asia</td><td>892.2</td><td>955.6</td></tr><tr><td>South America</td><td>522.2</td><td>412.0</td></tr><tr><td>Other countries -1</td><td>2,571.6</td><td>2,141.1</td></tr><tr><td>Total</td><td>$10,906.3</td><td>$10,545.6</td></tr></table>

Question: What is the growing rate of Residential pass-through securities in the year with the most Corporate — private? (in %)
Answer: 0.0035