Radian Group Inc., parent of Radian Asset Assurance, submitted paperwork to the Securities and Exchange Commission Friday that said it would delay filing its annual report because of trouble valuing the collateralized debt obligations that the company insures through its financial guaranty business.

Radian insures CDOs by selling credit default swaps and the lack of a market for these derivatives in recent months is making it difficult for Radian to mark them to market, the company said in SEC filings. The delay was due to a confluence of factors, including difficulty evaluating certain assumptions underpinning the transactions, the limited market for the CDS, and a lack of any observable market data that could be used to provide reasonable estimates.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.