As Radian clear up lower rated assets like the "Jefferson County Sewar bond" issues, which are rated ""below investment grade" they have possibility to improve their corporate rating for both Radian group and Radian Asset Assurance.
JeffCo sewer bonds aren't an asset. Radian provided a financial guaranty on the bonds and related warrants to pay interest and principal on JeffCo's debt if they were unable to. JeffCo is now bankrupt. Do you think Radian adequately reserved for the JeffCo exposure? If so, how do you know they did? Long term getting rid of the JeffCo garbage is a good thing, but maybe a negative for the capital ratio in the short term.