Radian Guaranty Inc., Philadelphia, has announced the completion of a structured transaction that it describes as "an innovative, new reinsurance solution" to manage its subprime mortgage risk.The transaction was completed on an $882 million portfolio of first-lien, subprime residential mortgage loans insured by Radian. "The company will reduce its exposure on this portfolio by transferring a significant portion of the risk to a Bermuda reinsurance company, Smart Home Reinsurance 2204-1 Ltd.," Radian said. Smart Home, which was formed solely to enter into the reinsurance arrangement, was funded in the global capital markets through the sale of credit-linked notes. The company said the transaction will help it boost capacity and take advantage of revenue growth opportunities. Radian can be found online at http://www.radianmi.com.

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