Bond Insurance
Bond insurance is an unconditional and irrevocable guaranty of principal and interest
on mortgage-backed securities. As a AA-rated insurer, Radian has particular expertise and much experience
in insuring investment- and non-investment-grade securities, including those in the following categories.
Net Interest Margin Securities (NIMs)
NIMs insurance enables the issuer to realize future cash flow immediately and, with credit enhancement
from Radian, to place a bond in the market at attractive spreads. Over the years, Radian has developed
particular expertise with NIMs, structured transactions that relate to other residential mortgage
securitizations. The issuer retains residual cash flow, resulting from the difference between the higher
cost of otherwise financing NIMs collateral and the lower cost of raising funds through a NIM
securitization.
Home Equity Bond Insurance
Radian guaranties principal and interest on certain debt securities backed by non-conforming residential
mortgages. Radian has participated in securitizations of scratch and dent, second lien and sub-prime
collateral.
Prime and Jumbo Retail MBS
Radian has provided bond insurance on several mortgage securitizations backed by prime and jumbo loans.
The majority of these securities have been offered to retail investors.
To discuss Radian bond insurance opportunities inside the U.S.,
contact Chris Curran, Senior Vice President, Capital Markets, +1 215 231.1041.
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