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Short squeeze is coming. This is gonna fly.
Cramer mentioned RDN on one of his 6 in 60 seconds stocks this morning.
HARP modifications continue to play major role
The Home Affordable Refinance Program (HARP) accounted for $2.5 billion of insurance not included in Radian Guaranty’s NIW total for the quarter. This compares to $2.9 billion in the fourth quarter of 2012 and $929.9 million in the prior-year quarter. As of March 31, 2013, more than 10 percent of the company’s total primary mortgage insurance risk in force had successfully completed a HARP refinance.
Radian Reports First Quarter 2013 Financial Results (5/01/13)
– Writes $10.9 billion of new MI business in the first quarter –
– Improves risk-to-capital ratio to 18.6:1; More than $800 million of currently available holding company liquidity –
– Total number of primary delinquent loans declines by 17% from first quarter of 2012 –
PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended March 31, 2013, of $187.5 million, or $1.30 per diluted share, which included combined losses from the change in fair value of derivatives and other financial instruments of $173.3 million. This compares to a net loss for the quarter ended March 31, 2012, of $169.2 million, or $1.28 per diluted share, which included combined losses from the change in fair value of derivatives and other financial instruments of $90.6 million. Book value per share at March 31, 2013, was $5.39.
“We took the opportunity this quarter to significantly improve our capital and liquidity positions, providing a competitive advantage for Radian in an extremely attractive business environment,” said Chief Executive Officer S.A. Ibrahim. “Building on our momentum with a strong risk-to-capital ratio, financial flexibility at the holding company, and the number one mortgage insurance market share position in the fourth quarter of last year, we kicked off 2013 with a 69% jump in new mortgage insurance business written year-over-year.”
Ibrahim continued, “As our strong new business volume continues, our delinquency inventory decreases and the mix of profitable new business begins to outweigh our legacy mortgage insurance book, we are positioning Radian for a return to operating profitability.”
CAPITAL AND LIQUIDITY UPDATE
In March, Radian improved its capital and liquidity position through a successful capital raise, resulting in net proceeds of approximately $689 million. As previously reported, Radian Group contributed $115 million of capital to Radian Guaranty in the first quarter, in order to support the company’s strong risk-to-capital position. Radian Guaranty’s risk-to-capital ratio was 18.6:1 as of March 31, 2013. After the above-mentioned contribution of $115 million to Radian Guaranty, Radian Group maintains approximately $815 million of currently available liquidity.
• Radian expects to maintain a risk-to-capital ratio of 20:1 or below at Radian Guaranty for the foreseeable future.
• The improvement in the risk-to-capital ratio from December 31, 2012, was primarily driven by the $115 million capital contribution from Radian Group and a release of Radian Asset’s contingency reserves of $68 million, partially offset by an increase to the company’s net risk in force resulting from strong, new mortgage insurance business volume.
• In order to proactively manage its risk-to-capital position, Radian Guaranty entered into two quota share reinsurance agreements in 2012 with the same third-party reinsurance provider. As of March 31, 2013, a total of $2.4 billion of risk in force was ceded under those agreements. Beginning April 1, the company reduced the amount of new business that will be ceded to the reinsurer on a prospective basis from 20 percent to 5 percent. On December 31, 2014, and on December 31, 2015, Radian has the ability, at its option, to recapture a portion of the business that was reinsured.
• As of March 31, 2013, Radian Guaranty’s statutory capital was $1.1 billion compared to $926 million at year-end 2012, and $920 million a year ago.
FIRST QUARTER HIGHLIGHTS
• New mortgage insurance written (NIW) was $10.9 billion for the quarter, compared to $11.7 billion in the fourth quarter of 2012 and $6.5 billion in the prior-year quarter. Radian wrote an additional $4.1 billion in NIW in April 2013, compared to $2.5 billion in April 2012.
? The Home Affordable Refinance Program (HARP) accounted for $2.5 billion of insurance not included in Radian Guaranty’s NIW total for the quarter. This compares to $2.9 billion in the fourth quarter of 2012 and $929.9 million in the prior-year quarter. As of March 31, 2013, more than 10 percent of the company’s total primary mortgage insurance risk in force had successfully completed a HARP refinance.
? Of the $10.9 billion in new business written in the first quarter of 2013, 64 percent was written with monthly premiums and 36 percent with single premiums.
? NIW continued to consist of loans with excellent risk characteristics, with 75 percent consisting of loans with FICO scores of 740 or greater.
• The mortgage insurance provision for losses was $132.0 million in the first quarter of 2013, compared to $306.9 million in the fourth quarter of 2012, and $234.7 million in the prior-year period. The loss ratio in the first quarter for Radian Guaranty was 72.1 percent, compared to 171.0 in the fourth quarter of 2012 and 135.3 percent in the first quarter of 2012. Mortgage insurance loss reserves were approximately $2.9 billion as of March 31, 2013, which decreased from $3.1 billion as of December 31, 2012, and from $3.2 billion as of March 31, 2012. First-lien reserves per primary default increased to $30,426 as of March 31, 2013, compared to $29,510 as of December 31, 2012, and $27,833 as of March 31, 2012.
• The total number of primary delinquent loans decreased by 9 percent in the first quarter from the fourth quarter of 2012, and by 17 percent from the first quarter of 2012. The primary mortgage insurance delinquency rate decreased to 10.9 percent in the first quarter of 2013, compared to 12.1 percent in the fourth quarter of 2012, and 14.1 percent in the first quarter of 2012. The company’s primary risk in force on defaulted loans was $4.0 billion in the first quarter, compared to $4.3 billion in the fourth quarter of 2012, and $4.9 billion in the first quarter of 2012.
• Total mortgage insurance claims paid were $309.9 million in the first quarter, compared to $263.4 million in the fourth quarter, and $218.2 million in the first quarter of 2012.
• $38.0 million of other operating expenses in the first quarter represented compensation expenses related to an increase in the estimated future value of performance awards that are impacted by changes in the company’s stock price. This increased compensation expense primarily reflects Radian’s higher stock price in the first quarter. In 2012, such compensation expenses were $13.5 million in the fourth quarter and $8.0 million in the first quarter.
• Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with dividends over time.
? As of March 31, 2013, Radian Asset had approximately $1.2 billion in statutory surplus with an additional $0.5 billion in claims-paying resources.
? In January, Radian Asset completed the commutation of its remaining reinsurance risk from Financial Guaranty Insurance Corporation (FGIC) of $822 million, which resulted in a $7 million contingency reserve release in the first quarter.
? In February, Radian Asset received regulatory approval to release an additional $61 million of contingency reserves, which benefited Radian Guaranty's statutory capital position in the first quarter. The reserve release was based on a reduction in Radian Asset’s net par outstanding, resulting from the maturing of exposures and other terminations of coverage.
? Radian Asset has paid a total of $384 million in dividends to Radian Guaranty since 2008, and expects to pay another dividend of approximately $37 million in 2013.
? Since June 30, 2008, Radian Asset has successfully reduced its total net par exposure by 76 percent to $28.2 billion as of March 31, 2013, including large declines in many of the riskier segments of the portfolio.
CONFERENCE CALL
Radian will discuss these items in its conference call today, Wednesday, May 1, 2013, at 11:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800-230-1096 inside the U.S., or 612-288-0329 for international callers, using passcode 290876 or by referencing Radian.
A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 290876.
In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults.
ABOUT RADIAN
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.
FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)
For trend information on all schedules, refer to Radian’s quarterly financial statistics at http://www.radian.biz/page?name=FinancialReportsCorporate.
http://www.businesswire.com/news/home/20130501005691/en/Radian-Reports-Quarter-2013-Financial-Results
Sold 1/3 of my May $10 Calls today for 100% return rather than holding them all into earnings as I originally said I would...#msg-86632234
MBA: Mortgage Applications Increase, Purchase Index highest since May 2010
Wednesday, April 24, 2013
The Refinance Index increased 0.3 percent from the previous week. The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier to the highest level since May 2010.
...
The HARP share of refinance applications increased from 31 percent last week to 32 percent this week, the highest level since MBA began tracking HARP applications in February 2012.
There has been a sustained refinance boom for over a year. (No one knows that better than our friend EI).
According to the MBA, the HARP program is contributing significant to the current level of refis.
[....]
<click on link below>
The first graph shows the refinance index.
The second graph shows the MBA mortgage purchase index. The 4-week average of the purchase index has generally been trending up over the last year, and the purchase index last week was at the highest level since May 2010.
http://www.calculatedriskblog.com/2013/04/mba-mortgage-applications-increase_24.html
LPS: Total Non-current Mortgages falls below 5 Million for the first time since 2008
Tuesday, April 23, 2013
According to the First Look report for March to be released today by Lender Processing Services (LPS), the percent of loans delinquent decreased in March compared to February, and declined about 3% year-over-year. Also the percent of loans in the foreclosure process declined further in March and were down significantly over the last year.
[....]
http://www.calculatedriskblog.com/2013/04/lps-total-non-current-mortgages-falls.html
RDN continues to surge....love it!!!
Radian Partners with iQual to Support Homeowners with Newly Modified Mortgages
"HILADELPHIA--(BUSINESS WIRE)--
Radian Guaranty Inc., the private mortgage insurance subsidiary of Radian Group Inc. (RDN), today announced it will offer a unique service, ApprovalGUARD™, to encourage borrowers, who recently modified their mortgages through the U.S. Department of the Treasury’s Home Affordable Refinance Program (HARP), to remain current on their new mortgage payments. HARP is designed to help underwater borrowers refinance into a new, more affordable and sustainable mortgage.
ApprovalGUARD, a proprietary service administered exclusively by the iQual Corporation, is the only national consumer credit advisory service that provides credit education coupled with a personalized review of a consumer’s credit report through highly trained credit advisors. In addition, each consumer is provided real time access to their personal credit information, 24/7 electronic credit monitoring, credit reports, scores and home property monitoring. Radian will select eligible homeowners for complimentary, one year access to ApprovalGUARD.
“These borrowers have taken the first step to try to remain current on their mortgage payments by having their loan modified, and we believe it’s important to offer them tools to support their efforts to stay in their home,” said Scott Theobald, Chief Risk Officer for Radian Guaranty. “By offering them access to ApprovalGUARD, we hope to empower these borrowers to make more informed credit related decisions by better understanding how credit works in conjunction with their personal credit goals.”
“With the multiplicity of credit products and the challenging economy, it’s difficult for consumers to understand how to most effectively manage their credit, given each person's unique issues and goals. iQual simplifies these complexities by educating each customer in a personalized manner to better understand their credit situation and learn how to make more effective credit related decisions,” said Jeff Mandel, the President and CEO of iQual Corporation. “We are excited to be partnering with Radian and respect its industry leadership and commitment to homeownership growth and preservation.”
About Radian
Radian Group Inc. (RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk management products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down payment mortgages in the secondary market. Additional information may be found at www.radian.biz.
About iQual Corporation
The iQual Corporation was founded in 2007. Its mission is to help consumers obtain and stay in their homes through empowerment fostered by credit education. The ApprovalGUARD service provides each customer with personal credit information and direct access to expert credit advisors who leverage this information to educate and proactively guide the consumer on how to make better credit related decisions.
Contact:
Radian
Emily Riley, 215-231-1035
emily.riley@radian.biz
or
iQual Corporation
Jeff Mandel, 704-895-0075
jeff@iqual.com
"
I watched 120 May $10 C contracts go through yesterday (single buy) for $1.50. Watched another 50 go through just now for the same. Somebody is pretty confident that this will be 11.50+ by May.
Okay...let me research the call/short situation. Sounds like a lot of folks don't think RDN will not experience continued success or perhaps they figured out how to make more money along the way playing both ends??? I must admit I feel funny watching profits come and go but I don't want to miss out on explosive increases. I watched FSLR jump $12 today. I sold 25% of my shares to lock in some profit, but now I'm praying FSLR does not drop just as fast tomorrow on the remainder of my shares...would not be happy...LOL!!! I anticipate RDN displaying similar jumps over the next couple years given the advancement of the housing recovery. I will be very reluctant to sell any RDN shares for quite some time. Trying to get a feel for how others feel about it. Will compare notes later!!!! THX!
I hold the underlying as an investment but am playing CALL options (currently the May 10 C) against the huge short position that's established. This month's earnings call could create quite the squeeze although it's obvious daily that the shorts are getting hurt but it's equally obvious that they are rolling over into new short positions given the increase in short% from Feb to March. It's kinda fun watching the trading action live all day and T&S live as well. Buying is relentless but the shorts keep slamming trying to stop the forward motion.
Love this stock! Hope it runs back to where it started from today by the bell. I'm long at least till the housing market recovers. Is that the strategy for most of us shareholders??? GLTA...ENJOY!!!
Radian Releases Delinquency Data for March (4/09/13)
PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today released data for primary mortgage insurance delinquencies for March 2013.
The information below regarding new delinquencies and cures is reported to Radian from loan servicers. Default reporting, particularly on a monthly basis, may be affected by several factors, including the date on which the report is generated and transmitted to Radian, updated information submitted by servicers and by the timing of servicing transfers.
March 2013
Primary New Insurance Written ($ in billions)
$3.63
Beginning Primary Delinquent Inventory (# of loans)
89,714
New Delinquencies*
4,168
Cures*
(6,338)
Paids (including those charged to a deductible or captive)
(2,028)
Rescissions and Denials
(407)
Ending Primary Delinquent Inventory (# of loans)
85,109
*Incorporates updated servicer information with respect to February 2013 new delinquencies and cures. For the two month period (February and March 2013) new delinquencies and cures were 9,646 and (11,223), respectively.
Capital and Liquidity Update
In March 2013, Radian Group contributed $115 million of capital to Radian Guaranty, in order to support the company’s strong risk-to-capital position. After the contribution, Radian Group maintains more than $800 million of currently available liquidity. The company expects to maintain a risk-to-capital ratio of 20:1 or below at Radian Guaranty for the foreseeable future.
About Radian
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.
Forward-Looking Statements
Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements. These forward-looking statements, which may include without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.
Contacts
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.biz
http://www.businesswire.com/news/home/20130409005230/en/Radian-Releases-Delinquency-Data-March
That should read "Third upgrade for RDN (not RGN)
sorry- brain fart
Third upgrade for RGN:
RDN Upgrade
"Macquarie Equities Research analyst Sean Dargan upgraded the stock to "Outperform" from "Neutral" and raised his price target to $13 per share from $8.50. Dargan said the company could struggle with its earnings in 2013 because of severely delinquent loans. However he expects Radian's results to improve in 2014 and 2015.
He added that the company is better capitalized following its $689 million sale of stock and debt in March, and it is well capitalized compared to its rivals..."
It’s Bill Miller, Again (4/08/13)
His Opportunity fund returned 35% for 12 months
By Suzanne McGee
If you looked at the holdings of the Legg Mason Capital Management Opportunity fund six months ago, it might have been hard to envision the fund outperforming all its rivals anytime soon. But one after another, the out-of-favor stock picks of fund managers Bill Miller and Samantha McLemore—Netflix Inc. and Best Buy Co. among them—rallied, sometimes dramatically.
The result: At the end of March, as at year-end, the fund was the top 12-month performer among the diversified U.S.-stock mutual funds in this newspaper’s quarterly competition.
“We aren’t trying to be heroes,” says Mr. Miller. “We’re just identifying and trying to exploit a gap that we see that exists between perception and the reality of value in some of these companies.”
For instance, he says, by last fall shares of Best Buy were “priced for imminent demise” of the company. He acknowledges that Best Buy’s business model has been threatened by the dominance of online shopping for electronics. But he didn’t believe that meant the company was poised for collapse when its founder and former chief executive, Richard Schultze, wasn’t able to put together a buyout proposal that the board found acceptable by the late-February deadline. That proved to matter to investors less than new CEO Hubert Joly’s success in cutting costs and delivering better-than-expected sales, Mr. Miller says. Best Buy’s stock soared nearly 84% in the first quarter of this year in response.
That was one of the turnaround stories that enabled Legg Mason Capital Management Opportunity to generate a return of 21% in the first quarter, bringing its chart-topping gain for the 12 months ended March 31 to 35.4%. The Winners’ Circle contest, based on preliminary numbers from Morningstar Inc., includes diversified U.S.-stock mutual funds with more than $50 million in assets and a track record longer than three years. (It excludes index funds, leveraged index funds and inverse leveraged index funds.)
Netflix soared 98.3% in the first quarter. “It began going up on almost the day we bought it in the fourth quarter; that quick move was a surprise,” Mr. Miller says. The fund’s cost basis for the stock is $65 a share, he says; Netflix was changing hands late last week at about $165 a share.
Some other holdings where Mr. Miller believes the inherent value isn’t reflected in current stock prices include mortgage-insurance companies like MGIC Investment Corp. and airlines including United Continental Holdings Inc., US Airways Group Inc. and Delta Air Lines Inc. And yes, even the beleaguered Apple Inc., which Mr. Miller and Ms. McLemore have been moving back to an overweight position in the fund’s holdings—relative to its weighting in the fund’s benchmark, the Standard & Poor’s 500-stock index—after many months when it was underweight in the fund.
Apple “is where we are most contrarian,” Mr. Miller says. The stock’s price, he says, assumes minimal growth for the company. Its price/earnings ratio is below those of uninspiring companies like grocery retailer Safeway Inc., slow-moving telecommunications giant AT&T Inc. and even Best Buy, whose business model is far more besieged than Apple’s. In Apple, Mr. Miller sees plenty of value that could be unlocked quickly by some kind of catalyst—and he sees plenty of potential for a catalyst, including a likely dividend increase.
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-205982/
Housing Starts in U.S. Climb as Building Permits Pick Up
Mar 19, 2013 5:47 AM PT
[....]
Building permits, a proxy for future construction, advanced 4.6 percent to 946,000, the strongest since June 2008.
[....]
http://www.bloomberg.com/news/2013-03-19/housing-starts-in-u-s-climbed-0-8-in-february-to-917-000-rate.html?cmpid=yhoo
Radian Adds Mortgage Industry Veteran to Serve as Chief Policy Officer, Government and Industry Relations
Radian Adds Mortgage Industry Veteran to Serve as Chief Policy Officer, Government and Industry Relations
PHILADELPHIA--(BUSINESS WIRE)--
Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc. (RDN), today announced the addition of 30-year mortgage industry veteran, Phillip Bracken, to the team. In the newly created role of Chief Policy Officer – Government and Industry Relations, Bracken will represent Radian on Capitol Hill, by promoting a more traditional balance between private and public capital in the mortgage finance market.
Bracken brings more than 30 years of mortgage industry experience to Radian, most recently serving as an executive consultant for private enterprise clients in the housing, financial services and consumer sectors. Prior to that, Bracken spent 15 years as an executive at Wells Fargo, where he managed government and industry relations, and policy development, for the Home Mortgage and Consumer Finance Group.
Earlier in his career, Bracken also held senior leadership roles at Prudential Home Mortgage in St. Louis, Missouri, and America’s Mortgage Company in Springfield, Illinois.
Bracken is well recognized, having won a variety of national awards for leadership and achievement within the mortgage industry, including a lifetime achievement award from the National Association of Real Estate Brokers and the Mortgage Bankers Association of America.
“As the housing market gains momentum, we need a strong, dedicated voice on Capitol Hill who will advocate for Radian and for balance within the mortgage industry, which is why we created this important role,” said Teresa Bryce Bazemore, president of Radian Guaranty. “Phil brings a wealth of industry experience and an impressive leadership background that make him a credible spokesperson for positive change in our industry.”
Bracken stated, “I have dedicated much of my career to protecting and promoting sustainable homeownership through my work in government and industry relations. I’m pleased to join the Radian team, and look forward to working closely with Teresa and the leadership team as they have already made tremendous progress in Washington, DC, on behalf of the private MI industry.”
Bracken is the co-chairman of the Consumer/Lender Roundtable in Washington, DC; and president of the Housing Renaissance, a group that comprises the top housing industry leaders in the country.
Radian Group Inc. (RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.
Contact:
Radian
Emily Riley, 215-231-1035
emily.riley@radian.biz
Got some $11 calls for April. I think $14 is realistic 3 month target, but maybe only $12 by April expiration. Been in since $8, Love this play. Grats to all of you who were smart enough to find it early!
Yeah I didn't start playing with this one until January this year- actually heard a blurb on FastMoney about all the insurers and I think Cramer covered it shortly after (Spec play for him at the time I think) I like the prospects here regardless of the "talking heads" anyway. GL!
Could be. RDN wasn't on my radar back then unfortunately. Hope to hear some good things tonight though.
It should be interesting. He was on awhile back (?December) wasn't he?
SIA-Chart for RDN
http://www.sia-charts.com/chartwiz/chart/home?symbol=rdn
Was a Daily Alert stock pick back in August when Superman showed up and then it was UP! UP! and Away!!!!
Anyone else see Diana Olick on CNBC this morning re: Mortgage & Mortgage Insurance industry news this morning?
Later (on Squawk on the Street) Olick did a segment on the market leaders in the MI biz -RDN, MTG & Genworth - showing charts on recent moves within the industry (unfortunately that video has no link).
RDN was clearly the blue ribbon pup in the bunch..but it was quite a boost for MI stocks in general.
http://video.cnbc.com/gallery/?play=1&video=3000153153#eyJ2aWQiOiIzMDAwMTU0MTA1IiwiZW5jVmlkIjoib3l0OXpiYWxkYUJtL3ByUUdOTkQxQT09IiwidlRhYiI6InRyYW5zY3JpcHQiLCJ2UGFnZSI6IiIsImdOYXYiOlsiwqBMYXRlc3QgVmlkZW8iXSwiZ1NlY3QiOiJBTEwiLCJnUGFnZSI6IjEiLCJzeW0iOiIiLCJzZWFyY2giOiIifQ==
Thanks for bringing up MTG. I like stuff around the 5 dollar mark. It's on my radar.
I'm sure RDN holders have seen the recent run MTG has had and maybe even particiapted in it. It's a confirming and welcome sign the industry as a whole is getting quite healthy now. I think RDN holders have known that for a while and have been happy riding that wave for months...but if pressed, and I had to choose just one MI company, I still like RDNs' story better over time... and here's why:
-- For the month of February 2013 MTG wrote:
Primary New Insurance Written - $1.9 ($Billions)
http://ih.advfn.com/p.php?pid=nmona&article=56627347
-- For the month of February 2013 RDN wrote:
Primary New Insurance Written - $3.29 (Billions)
http://finance.yahoo.com/news/radian-releases-delinquency-data-february-130000030.html
*Should this pace continue RDN will write $16.8 Billion dollars worth of new insurance over MTG in 2013.
i got mixed feelings about that because I added yesterday. Hate to see it go down but welcome a chance to lower my cost basis. All a part of the game. GLTA!!!
If it drops another dollar from here, I'll be in.
ALL the insurers are on fire and have been since the housing market has been steadily improving...with the huge (25%+) short position here and Barclays upgrade yesterday and the recent capital raise, it's no wonder RDN is flying. I own the underlying and admittedly bought May Calls a week ago based on the Cramer "bump" possibility but I still think this goes to 12+ before Summer on its own merits (as long as housing doesn't blow up for some reason).
Cramer = kiss of death. His track record is horrible.
Amazing. Soon as Cramer mentioned it the buying went through the roof! Mad money
Lol I did the same. Upped my position x5 around the high for the day. Oh well, can't always have perfect timing. We're going much higher though so no worries.
I added today but pulled the trigger too soon. If I would have waited 30 min longer I could have bought .50 cheaper. GLTA
Over 10....DAMN. Congrats to everybody who was holding.
i was in fom 6.50 up and down to finally 7.50 then sold obviously way to early
It's still a great buy! I believe it will go back to pre-resession cost levels eventually with less competition. Folks are starting to buy houses again and need mortgage insurance in most cases. I'm putting as much as I can into Radian before it really takes off!!!!!
I kept waiting for it to backtrack after it busted through 5, but it never did! Crap.
I bought Radian Group for $1 in 2008 and sold it...who knew there would be a comeback like this?!?!?!? Back in strong at $7 though...Go RDN!!!!!
What does dilution have in common with Cholesterol? lol.. let me explain - Everybody knows there is good cholesterol and bad cholesterol..and most of it is bad.. but the same could be said for stock dilution. Most of time dilution is dreaded news but why does it signal something good like it does in this case?
RDN Announces Underwriters’ Exercise of Options to Purchase Additional Securities for Concurrent Offerings of Common Stock and Convertible Senior Notes (2/27/13)
PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today announced that the underwriters of its previously announced concurrent public offerings of common stock and convertible senior notes due 2019 have exercised in full their options to purchase an additional 5.1 million shares of common stock and an additional $50 million principal amount of notes from the Company at the public offering price, less underwriting discounts and commissions. As a result, the Company expects to issue a total of 39.1 million shares and $400 million principal amount of notes and to receive aggregate net proceeds, after underwriting discounts and commissions and estimated offering expenses, of approximately $299.5 million from the common stock offering and $389.8 million from the convertible senior notes offering. The offerings are expected to close on March 4, 2013, subject to customary closing conditions.
Morgan Stanley & Co. LLC and Goldman, Sachs & Co. have acted as joint book-running managers for the offerings, Dowling & Partners Securities, LLC, Keefe, Bruyette & Woods, Inc., Macquarie Capital (USA) Inc. and Wells Fargo Securities, LLC have acted as co-managers for the common stock offering and Keefe, Bruyette & Woods, Inc. has acted as co-manager for the convertible notes offering.
The shares and notes will be issued pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the “SEC”) on Form S-3 and declared effective on August 20, 2012. The offerings are being made by means of a prospectus and related prospectus supplements. A copy of the prospectus supplement and the accompanying base prospectus for each of the offerings has been filed with the SEC and is available for free on the SEC’s website: http://www.sec.gov. Alternatively, copies may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, by calling (866) 718-1649 or by emailing prospectus@morganstanley.com, and from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, by calling (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security of the Company, nor will there be any sale of any such security in any jurisdiction in which such offer, sale or solicitation would be unlawful. Each of the offerings may be made only by means of a prospectus supplement and accompanying base prospectus.
About Radian
Radian Group Inc., headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down payment mortgages in the secondary market.
Contacts
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.biz
http://www.businesswire.com/news/home/20130227006636/en/Radian-Announces-Underwriters%E2%80%99-Exercise-Options-Purchase-Additional
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Headquartered in Philadelphia, Radian connects lenders, homebuyers, investors and loan servicers using a suite of private mortgage insurance and related risk management products and services.
We help promote and preserve the tradition of homeownership while protecting lenders from default-related losses on residential first mortgages. We also facilitate the sale of low-downpayment mortgages in the secondary market. Our commitment to homeownership is built on a foundation of evaluating credit risk; we help clients and investors expertly and prudently manage risk in any market condition. Radian Group Inc. is traded on the New York Stock Exchange under the symbol RDN.
Radian is a group of separately capitalized companies that share a unified strategic focus. Our core business, Radian Guaranty Inc., provides private mortgage insurance to protect lenders from default-related losses, facilitate the sale of low-downpayment mortgages in the secondary market and enable homebuyers to purchase homes more quickly with downpayments less than 20%.
Other Radian companies include:
Radian Asset Assurance Inc. provided financial guaranty insurance and reinsurance to domestic and international issuers of municipal bonds, asset-backed securities and structured finance transactions. In the third quarter of 2008, we discontinued writing any new financial guaranty business, including accepting reinsurance.
Radian Asset Assurance Limited is a subsidiary of Radian Asset Assurance Inc. for an array of asset classes including synthetic credit default swaps, in the United Kingdom, France, the Netherlands and the Republic of Ireland.
Radian Insurance Inc. is a subsidiary of Radian Guaranty Inc., and provided credit enhancement for capital market transactions and wrote credit insurance on mortgage-related assets, along with net interest margins and second lien mortgages. We have discontinued writing insurance for these and other products in the capital markets.
Radian's ownership interests help lending institutions effectively manage their balance sheets by purchasing, servicing and securitizing sub and non-performing assets, including mortgages, credit card receivables, student loans and bankruptcy debt.
C-BASS
We own a partnership interest in C-BASS, which specialized in acquiring, servicing and securitizing credit-impaired residential mortgages that have been or are being foreclosed. In the second half of 2007, C-BASS exited the securitization business and is currently liquidating its existing portfolio. Visit the C-BASS website.
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