I've been wondering how much debt was insured by Ambac and MBIA, the 2 biggest insurers of bonds, and this AP article gives us an idea. If these 2 go bust, the debt they insure goes the same way and that would be a LOT of money. The total for these 2 companies alone is $1.25 TRILLION.
Moody's Sinks Bond Insurance Stocks
Thursday January 17, 5:11 PM EST
NEW YORK (AP) — Bond insurance stocks plunged Thursday after a ratings company said Ambac Financial Group Inc.'s plan to raise cash may not be enough to save its crucial credit rating.
Ambac shares fell 51.9 percent to $6.24, while shares of chief rival MBIA Inc. fell 31.2 percent to $9.22. Smaller competitors Security Capital Assurance and ACA Capital Holdings also fell substantially.
Ambac insured about $555 billion in debt at the end of September. MBIA insures more than $670 billion.
Thursday, January 17, 2008
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment