MGIC Investment Corp.
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Profits To Return At These Mortgage Insurers Despite Increased Competition
By Adnan Khan - June 15, 2013 | Tickers: AIG, MTG, RDN
The US housing markets have shown considerable improvement with the help of the governments stimulus programs. As a result, I believe the mortgage insurance giants like Radian Group (NYSE: RDN) and MGIC Investment (NYSE: MTG) will post strong results in the coming quarters. Bloomberg reports Standard & Poor’s expects these stocks to report the return of profits after a long time.
Fears of insolvency
Analysts at S&P believe that more »
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Why Do Institutions Love These Stocks?
By Adnan Khan - June 10, 2013 | Tickers: GNW, MTG, RDN
The US housing markets are on their way towards a recovery, and investors, both retail and institutional, are busy trying to make sure they get a piece of the recovery pie. This article will feature three financial stocks that institutional investors think will benefit from the recovering housing markets, which is why I recommend that retails investors consider them as the best way to play the US housing recovery.
One more »
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Check out These Mortgage Insurers for a Good Play on the Housing Market Rebound
By Rupert Hargreaves - May 30, 2013 | Tickers: GNW, MTG, RDN
The property market is on the rebound and home prices are now on average the highest on record, according to Reuters. For the most part, the boom in property sales has been due to the availability of mortgages and one of the best ways to play this trend could be through mortgage insurance providers.
The main players
Of the main mortgage insurance companies around are MGIC Investment (NYSE: MTG) and more »
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Buying Opportunity In This Insurance Giant
By Adnan Khan - May 13, 2013 | Tickers: GNW, MTG, RDN
Genworth Financial (NYSE: GNW) operates as an insurance provider in the US financial industry. It provides a broad range of insurance and investment products to both retail and institutional US clients, while it has operations outside the US as well. The company’s mortgage insurance unit turned profitable but its long-term care sub-unit remains a headache. The remaining of the investment thesis aims to discuss the latest financial discolors in more »
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Losses Widen for This Insurance Giant
By Adnan Khan - May 9, 2013 | Tickers: GNW, MTG, RDN
The mortgage insurance industry took the worst hit when the U.S. housing bubble burst. Many of the giants have since been reporting losses, while the smaller ones went out of business. MGIC Investment (NYSE: MTG), one of the larger mortgage insurers, is still in the business, providing property and casualty insurance across the U.S.
The company disappointed analysts and investors when it reported its first-quarter results last month more »
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Billionaire John Paulson Sees "Considerable Upside" in 3 Stocks
By John Macris - April 25, 2013 | Tickers: GNW, MTG, RDN
John Paulson, the New York-based hedge fund manager, is known for making bold stock market calls. The Harvard and New York University graduate, which Forbes considers the 31st richest person in America, has gained considerable media attention for his large investment in gold.
Unless you consider yourself to be a casual market observer, you’re probably aware that the SPDR Gold Trust suffered a precipitous 13% decline on Friday, April more » -
Time To Buy These Two Speculative Insurance Companies
By Sammy Pollack - April 22, 2013 | Tickers: MTG, RDN
On March 7, 2013, in a piece entitled MGIC and Radian Surge: Updating My Outlook, I said:
I am maintaining my long-term bullish outlook for both MTG and RDN. However, I would not buy shares right now. Investors should look to buy either MTG or RDN on a significant pullback or after both stocks have gone through a consolidation period.
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Consumer Bureau Gives Mortgage Insurance Companies a Wrist Slap
By Kyle Colona - April 12, 2013 | Tickers: AIG, GNW, MTG, RDN
The Consumer Finance Protection Bureau (CFPB) announced a legal settlement with four mortgage insurance companies last week that will resolve allegations of "kickbacks" to lenders, and require the firms to pay more than $15 million in combined penalties.
The legal case involved Gemworth Mortgage Insurance, Mortgage Guaranty Insurance, Radian Guaranty and United Guaranty (all units of publicly traded companies). In its press release announcing the settlement agreements, the bureau claims more »
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Growth in Private Mortgage Insurers Not Enough
By Adnan Khan - March 18, 2013 | Tickers: AIG, GNW, MTG, RDN
Following the recent run in stocks, I see mortgage insurers as being fairly valued. Capital positions have strengthened and industry fundamentals are improving. However, going forward there is not enough earnings power to provide additional upside. This report looks at the various macro level inputs and finds that the private mortgage insurance industry is poised to deliver NIW (new insurance written) growth over the coming years despite the declines in more »
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How To Play The Mortgage Recovery Safely
By Bill Edson - March 15, 2013 | Tickers: AGNC, CG, CS, MTG
There are many ways to play a recovery in the mortgage market, though some angles are more treacherous than others. Investors can choose between REITs (Real Estate Investment Trusts) that specialize in leveraged buying of mortgage debt, financial companies that invest in distressed residential real estate, or mortgage bond insurers.
Leveraged mREITs
American Capital Agency (NASDAQ: AGNC) raised $1.58 billion by selling approximately 50 million shares in February 2013 more »
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Freddie Mac Made $11 Billion - How About the Private Mortgage Insureres?
By Adam Jones - March 7, 2013 | Tickers: AIG, MTG, RDN
Freddie Mac, the government-run mortgage finance provider, recently reported an annual profit of $11 billion. Freddie attributed the earnings to an increase in home values and a drop in delinquencies. This great news provides additional data regarding the housing market's continued recovery.
The fact that Freddie attributed the gains to a drop in delinquencies piqued my interest in relation to the private mortgage insurers -- particularly that sector's two more »
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How Kyle Bass is Playing the Housing Recovery
By Meena Krishnamsetty - May 1, 2012 | Tickers: AIG, GNW, MTG, RDN
Last November, Kyle Bass’s hedge fund, Hayman Capital Management, filed a 13G disclosing its 4.9% stake in Milwaukee-based private mortgage insurer MGIC Investment Corp (NYSE: MTG) (read more on the announcement). His investment was predicated on the belief that the housing market was near or already at its bottom. This may have been prescient given that the S&P/Case-Shiller index fell 3.5% in February, the smallest more »
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Radian: Bullish Now, but Proceed with Caution
By Bobby Fisher - March 2, 2012 | Tickers: MTG, RDN
Radian Group, Inc. (NYSE: RDN) operates in the mortgage insurance, bond reinsurance, and mortgage lending risk management business sectors. Just the presence of the words “mortgage” and “bond reinsurance” may spur flashbacks to the 2008 financial crisis and the mortgage sector meltdown, and well they should: Radian Group’s share price was badly punished starting in the second half of 2007. Even a quick glance at a five-year price chart more »