(Reuters) - As more Americans buy homes, the handful of private insurers that cover their mortgages are attracting heavyweight investors keen to profit from the nascent housing market recovery.
With billionaire John Paulson snapping up their shares, Radian Group Inc and MGIC Investment Corp are at the forefront of a recovery that is wiping out losses sustained when the housing bubble burst five years ago.
"These companies are writing highly profitable new business," said Charles Murphy, partner at hedge fund Paulson & Co.
Though the housing recovery might have slowed, with mortgage rates rising on the expectation that the U.S. Federal Reserve will soon reduce its bond-buying economic stimulus program, most economists think the upward trend will continue.
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