Monday, July 30, 2007

UPDATE 1-MGIC says investment in subprime venture at risk

(Reuters) - MGIC is slated to merge with rival Radian Group Inc.
, which also owns a stake in the venture, called
Credit-Based Asset Servicing and Securitization LLC ,
later this year.




"Beginning in February, the market for subprime mortgages has
experienced significant turmoil, with market dislocations
accelerating to unprecedented levels ... in ... mid-July," MGIC
said in its statement. Credit agencies have now downgraded
hundreds of bonds backing subprime loans to junk.


Read more at Reuters.com Mergers News

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