Share Price Catalysts, page-71

I must admit, I'm in two minds about posting positive things about Genworth as I'd also love to scoop up more shares at sub $2!

Not sure if anyone else attended or watched the investor day. I was most impressed with the CRO. He has vast LMI experience. He has been instrumental in positioning the Genworth book to be underweight in loans to higher risk groups - they are underweight in low-doc loans, underweight in investor loans, interest only loans, mining regions, natural catastrophe exposed homes, high DTI, regional QLD and WA.

The most bullish comment for me was a passing comment made by the CEO (at 1hr 50 mins on the webcast) who effectively dismissed interest rates and falling houses prices as concerns to Genworth. She said delinquencies occur because people lose their job. If they stay employed, they will find a way to make the repayments. House price falls are academic if you don't have delinquencies. The RBA continues to forecast unemployment remaining stable over the next two years (actually falling slightly to 3.6%), certainly not rising to the 8 - 10%+ levels where Genworth starts to lose money. So her quiet confidence is understandable.