We turn now to the impact of the FHFA capital proposal on the strategic value of MI and other forms of credit enhancement that are not credit risk transfer, which we will subsequently consider.  In very broad terms, credit enhancement has regained new luster because of the far stiffer approach proposed for current CRT constructs. Private MI is treated better than before, but still faces competition, possibly even for charter-level coverage.  The advanced internal-ratings based (A-IRB) calculation will generally set the terms on which GSEs acquire credit risk mitigation, further hurting MI but giving certain CRT forms a fighting chance.

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