On the other hand, the commutation may have benefited Radian if they commuted the exposure before they took more losses on it that they had yet to reserve for, also, they probably hadn't earned all the premium on this exposure either, so it could have reduced the unearned premium reserve as well as the loss reserve. The problem with the announcment is that it really does not tell us much. USUALLY, if RADIAN has good news or improves their capital base in some way they shout it from the rooftops.... when they booked realized investment gains we had the exact amount it benefited their capital ratios and they pretty much announced it to the universe.
I am just trying to clarify that we don't know ultimately how this effects Radian. I am sick of reading posts of folks that thing the commutation means Radian bought back their own debt. I am just here to try and shed some light on the commutation and what it may ultimately mean. Do you think it was a positive? If so....why? Specifics would be nice.