Entries tagged "monolines"

S&P ratings action ensure gains at bond insurers

Standard and Poor's and its ratings agency peers have caused much heartache and pain among shareholders of the major bond insurers due to a mix of downgrades and negative reviews. But on Friday, Aug. 15, shareholders of the two largest monolines, MBIA Inc. and Ambac Financial Group Inc., had S&P to thank for significant stock gains. ...

Ackman likely unhappy as bulls run up monolines

While the Dow Jones Industrial Average's 302.89 point gain to 11,734.32 on Friday may have put a little weekend spending cash in investors' pockets, activist investor Bill Ackman of hedge fund Pershing Square Capital Management LP may have a little less reason to celebrate as two of his short-selling targets, bond insurers MBIA Inc. and Ambac Financial Group Inc., each recorded double-digit gains over the past week on surprisingly strong earnings....

Triple-A monolines: A dying breed

A top triple-A credit rating is a rarity in the troubled world of the bond insurers these days. And the few that still hold onto one are threatened with having it pulled out from under them. The newest on Moody's Investors Service ratings watch list: Assured Guaranty Corp. and Financial Security Assurance Inc., or FSA. ...

Moody's downgrades MBIA, Ambac, but is Ackman satisfied?

Moody's Investors Service gave MBIA Inc. and Ambac Financial Services Inc. a swift kick in the you-know-what, with the removal of the monolines' triple-A ratings. Moody's on Thursday evening announced it had downgraded MBIA Insurance Corp.'s insurer financial strength rating two notches A2 with a negative outlook from triple-A. Ambac Assurance Corp.'s insurer financial strength rating was concurrently dropped one notch to Aa3  with a negative outlook from triple-A. The ratings actions follows a review for possible downgrade of the monolines' top ratings that was initiated on June 4. ...

FT: Trio of banks could face write-downs on monoline exposures

The Financial Times reported on Wednesday that Citigroup Inc., Merrill Lynch & Co. and UBS could face additional write-downs of up to $10 billion after the two largest bond insurers Ambac Financial Group Inc. and MBIA Inc. last week lost their triple-A credit ratings from Standard & Poor's. The banks rely on the monolines to insure holdings of risky structured finance products, such as mortgage-backed securities, and the report said that the trio are the banks most exposed to Ambac and MBIA, with UBS' exposure at $6.3 billion, Citi's at $4.8 billion and Merrill's at $3 billion. ...

Another day, another ratings move against the monolines

Anything Moody's Investors Service can do, Standard & Poors can do faster. S&P's downgrade of MBIA Inc. and Ambac Financial Group Inc. on Thursday beat Moody's to the punch as Moody's on Wednesday only put the monoline's triple-A rating on review for possible downgrade....

Ratings Review: MBIA, Ambac may get Moody's downgrade

Shares of MBIA Insurance Corp. and Ambac Assurance Corp. nosedived Wednesday afternoon as Moody's Investors Service announced it may downgrade its credit ratings on the two bond insurers. The possible downgrade is a result of deteriorating financial conditions at both bond insurers attributed to the mortgage-fueled credit crunch. MBIA fell 80 cents, or 13%, to $5.82 while Ambac dropped 47 cents, or 16%, to $2.52 as Moody's placed its Aaa rating on MBIA and Ambac on its review for possible downgrade. Moody's warned that it may downgrade MBIA one level to Aa and Ambac two notches to A. ...

FGIC still searching for a lifeline

The weakest of the big bond insurers says it is making progress fashioning a bailout.

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