Radian sells chunk of investment in Sherman

NEW YORK, Sept 19 (Reuters) - Bond insurer and credit risk manager Radian Group Inc (RDN.N) said on Wednesday it sold a portion of its investment in debt recovery firm Sherman Financial Group to an entity owned by Sherman management for $278 million.

Radian reduced its holding in Sherman's outstanding equity to 21.8 percent. It sold its 50 percent stake of the preferred units of Sherman and 43 percent of its 40.96 percent stake of Sherman's Class A common units.

(Reporting by Megan Davies)