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Home » News » Mortgage Insurer National MI Uses ‘Linked Notes’ to Lay Off Risk; Arch MI Exploring the Same, but will Other MIs?
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Mortgage Insurer National MI Uses ‘Linked Notes’ to Lay Off Risk; Arch MI Exploring the Same, but will Other MIs?

May 12, 2017
An affiliate of NMI Holdings, Emeryville, CA, has issued a $211.3 million, 10-year credit-linked bond aimed at laying off risk at its mortgage insurance affiliate National MI. The notes were issued by NMI affiliate Oaktown Re Ltd. in three tranches: $98.61 million that filled the M-1 class, $98.61 million (M-2), and $14.1 million (B-1). The yields, respectively, are LIBOR plus 225 basis points, LIBOR plus 400 basis points, and LIBOR plus 575 bps. According to Robert Smith, National MI senior vice president of pricing and portfolio analytics, investors that bought the credit-linked notes were...
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