Mortgage Insurance Sector's Strange Moves By Jim Cramer About this article: We don't get the conclusion the bears want because of decisions made by outfits like MGIC Investment and Genworth, both in the last 24 hours. MTG's decision simply to delay an interest payment on a junior convertible debenture is astounding, because it shows that common-stock shareholders are somehow in charge, not debt holders. Even though the company's stock fell almost 10% yesterday, the fact is that mortgage insurers are supposed to be paying off for home mortgages that are defaulting, and this company has lost money for eight straight quarters, and even if you believe the optimistic predictions about home valuations and mortgages -- as I do -- you know that this company is in huge trouble. What ever happened to simply forcing a default by bondholders? Although it is pretty obvious that the junior subordinated debt holders have mediocre standing if they do so. Genworth is... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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