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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: zebra4o1 who wrote (16539)7/15/2004 9:40:04 AM
From: Ramsey Su  Read Replies (1) | Respond to of 110194
 
The perfect storm for the MI companies:

1. stock price stays high.

2. reserves low and based on overly optmistic outlook.

3. new insurance down, competition for remaining business reduces premium and increases costs.

4. real estate appreciation stops (does not need to go down), cure rate will go to zero, default rate goes straight up.