Radian Group Inc.'s mortgage insurance unit has completed the third and largest of the specialized transactions through which it transfers some credit risk from its insurance on nonprime mortgages to the capital markets.
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The Philadelphia company said Wednesday that in the "Smart Home" transactions it cedes a portion of the risk on a loan pool to an unaffiliated reinsurer, which then issues credit-linked notes to investors.
The transaction announced Wednesday involved nearly $6.3 billion of nonprime loans, and created $172.9 million of credit-linked notes. The other two transactions involved loan pools of $882 million and $1.7 billion.
