Friday, March 13, 2009

MGIC Not "Magic" This Year


MGIC Investment Corp. ... said in a late-Wednesday regulatory filing it deferred its interest payment on some debentures by 10 years.

The filing, which revealed MGIC is likely having liquidity issues ...... Fitch Ratings put its credit ratings on MGIC and two of its units on watch for possible downgrade Thursday. ...

Mortgage insurers such as MGIC cover potential lender losses on loans to borrowers who can't come up with a 20% down payment. The sector continues to struggle with soaring claims and declining new business ...

Not exactly a surprise, or anything.

HT CalcRisk

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