Soros to Goldman Poised to Win on Crisis-Era Housing Bet – Bloomberg 09-24-13

Salient to Investors:

Goldman Sachs, JPMorgan Chase and George Soros are poised for IPO gains from investing in Essent Group, a Bermuda-based mortgage insurer in 2009.

Mortgage insurers are rebounding on property prices now rising at the fastest pace since 2006 and with the government reducing its role backing home loans.

Jack Micenko at Susquehanna Intl said mortgage insurers are the best way to play the housing recovery.

Jim Ryan at Morningstar said mortgage insurance will play an increasing role in facilitating first-home purchases as the economy strengthens as not many people have the 20 percent to put down, especially first-time homebuyers.

Jason Stewart at Compass Point Research & Trading said there is a lot more capital and a lot more competition for each loan, so that will start to impact returns.

Rob Haines at CreditSights said insurers like Essent have advantages over competitors burdened by losses from pre-crisis loans.

Read the full article at  http://www.bloomberg.com/news/2013-09-24/soros-to-goldman-poised-to-win-on-crisis-era-housing-bet.html

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