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For sale signs in front of homes in Calgary.
For sale signs in front of homes in Calgary.
(Todd Korol for The Globe and Mail/Todd Korol for The Globe and Mail)

Genworth confident of its capital base

By embarking on its first-ever normal course issuer bid, Genworth MI Canada Inc. is trying to send a signal to investors that it is not worried about its capital levels.

The company’s stock is still trading below book value due to fears about Canada’s housing market. Investors who think that the Canadian real estate market is in for a big decline have cited Genworth, the country’s largest private-sector mortgage insurer, as a possible short for some time now. The company said late Tuesday that it plans to buy back up to five per cent of its shares.