Radian Says Bond Insurer Could Free Up Capital Very SoonZachary Tracer and Laura Davison
Radian Group Inc. may decide on a plan to free up funds at its bond insurer by the end of the year, Chief Financial Officer Bob Quint said today.
“It could be very soon,” Quint said at a conference held by JMP Securities today in New York. “The more important thing is to do the right thing and get the right value for it, as opposed to, ‘We’ve got to do something by next whenever.’”
Quint’s company, the No. 2 U.S. mortgage insurer, has hired Goldman Sachs Group Inc. to weigh options for the Radian Asset bond guarantor. The parent firm is working to fill a projected $850 million gap from more stringent U.S. standards that have been proposed for companies that back home loans. Options for Radian Asset include selling the unit or using reinsurance, Quint said today.
Radian Asset is probably worth $750 million to $1.2 billion, analysts at Compass Point Research & Trading LLC said in a Sept. 16 note.
“We think it has strong value,” Quint said. “It would be distasteful to give up a lot of that value.”
Radian slipped 0.2 percent to $14.34 at 11:31 a.m. in New York. The Philadelphia-based company is up 1.6 percent this year.