Will C-Bass Sink the MGIC-Radian Merger?

Analysts think the floundering loan servicer's liquidity woes could threaten the merger of the two mortgage insurers that control it

Market players are still debating how serious the credit crunch spurred by subprime loan fears will be. Meanwhile, a proliferation of margin calls by nervous lenders is causing a real liquidity crunch for companies that service and package low-grade loans.

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