US mortgage insurers increasingly tap CRT market

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By Alexander Saeedy
21 Nov 2018

Credit risk transfer deals were pioneered by the US government-sponsored enterprises (GSEs) as a means to limit taxpayer liability to the quasi-public entities’ massive portfolio of mortgages. But private mortgage insurers have followed suit and are transferring a portion of their insurance risk in similarly structured deals.

Last week, US mortgage insurer Radian Guaranty completed its first mortgage insurance-linked securities (ILS) transaction, a deal which helped it secure $434m through a newly formed special purpose insurance trust, Eagle Re 2018–1 Ltd. Credit Suisse led the deal.

The firm was able to ...

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