Posts Tagged ‘mortgage crisis’



December 22nd, 2016

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)Insurance: Part II

Posted at 1:00 AM ET

krohn_jeff_photo_crop-sm1tedeschi_john_photo_sm21Jeff Krohn, Managing Director and John Tedeschi, Managing Director

Contact

(Re)insurance markets sold close to USD 8 billion of government sponsored entities (GSEs) mortgage credit risk transfer from 2013 to 2016 year-to-date, with significantly more planned on a consistent basis. A robust global credit risk transfer market is now in full-effect; recent transactions include the Credit Insurance Risk Transfer and Agency Credit Insurance Structure (re)insurance purchased by Fannie Mae and Freddie Mac, and capital bond issuances from Fannie Mae’s Connecticut Avenue Securities and Freddie Mac’s Structured Agency Credit Risk.

Continue reading…

December 21st, 2016

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)Insurance: Part I

Posted at 1:00 AM ET

krohn_jeff_photo_crop-smtedeschi_john_photo_sm2Jeff Krohn, Managing Director and John Tedeschi, Managing Director

Contact

The global financial crisis of 2008 exposed the US mortgage industry, taxpayers and the global capital markets to the full loss potential of residential mortgage credit risk. A total shakeup of the US housing sector was the result: a return to prudent underwriting criteria; market standardization in product; Private Mortgage Insurer Eligibility Requirements (PMIERs); and a Federal Housing Finance Agency (FHFA) directive that mandates government sponsored entities (GSEs) Fannie Mae and Freddie Mac to begin transferring credit risk on the hundreds of billions of dollars of US mortgages issued each year.

Continue reading…

May 10th, 2010

GC Videocast - Dramatic Improvement in Reinsurer Earnings and Balance Sheets Following Financial Crisis (Chris Klein)

Posted at 1:00 AM ET

klein_chris_bio

Chris Klein, Guy Carpenter’s Head of Business Intelligence, reviews the dramatic change and improvement in reinsurers’ fortunes following the global financial crisis. He reviews the year- end 2009 earnings results of the Guy Carpenter Bermuda Reinsurance Composite. He also reviews the primary drivers for capital decline and then growth among those reinsurers in 2008 and 2009, respectively. The impact of capital growth on capacity is also discussed.

View all Guy Carpenter videocasts >>

Continue reading…

September 7th, 2008

World Catastrophe Reinsurance Market 2008

Posted at 1:35 PM ET

Catastrophe reinsurance rates declined for the second year in a row. Price competition intensified as a result of abundant capital, lower than average catastrophe losses, and strong overall profitability. But, reinsurance rates are projected to decrease at a slower pace in 2009 than in 2008, as reinsurers face earnings pressure from a number of sources.

According to the Guy Carpenter World Rate on Line (ROL) Index, rates declined by 10 percent on average in 2008. This compares to a 6 percent drop in property-catastrophe ROL for the same period in 2007.

Continue reading…