PMI Europe Insures Multi-Billion Euro Hypovereinsbank Credit Portfolio
Mortgage insurer PMI Mortgage Insurance Company Limited (PMI Europe), asubsidiary of The PMI Group, Inc. (NYSE: PMI) today announces theunderwriting of a first loss tranche from the securitisation of home loansfinanced by Hypovereinsbank to the value of 20.4 million euros. The portfolioof securitised mortgage credits encompasses a total of around 2.9 billioneuros.
The "Provide A 2006-1" transaction, which is a private placement, enablesHypovereinsbank to shift the credit risk of the underlying loans from its ownbooks to those of PMI Europe and other investors. By assuming the first lossposition, PMI Europe has underwritten the most subordinated tranche thatserves as equity capital for the other tranches. As a leading global providerof credit enhancement, PMI has extensive experience in this field and PMIEurope is one of Europe's top insurers in first loss positions forsecuritisations of residential mortgage loans.
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