Insurance-linked notes have become all the rage among mortgage insurance firms. The latest deal to hit the market is a $316 million note offering from MGIC via a Bermuda reinsurance affiliate.

Industry participants see promise in credit-risk transfer transactions beyond the government-sponsored enterprises, with possible markets developing involving Ginnie Mae, banks, credit cards and auto loans.

“HARP is dead, long live High LTV Refinance programs!” That’s the title of a recent report by structured finance analysts at Bank of America Merrill Lynch on the impact HARP’s replacements will have on the government-sponsored enterprises’ credit-risk transfer programs.

Fannie/Freddie’s issuance of credit-risk transfer debt notes hit a record high of $15.19 billion in 2018. [Includes one data chart.]