Monoline Insurer News

Dexia Finds a Buyer for Financial Security Assurance

Rail — Thu, 27 Nov 2008 00:07:11 +0000

Financial Security Assurance (FSA) was sold by Dexia as the European bank reported a $1.9 billion loss. Assured Guaranty, Wilbur Ross), purchased the monoline insurer for $1.45 billion. It is important to note that this sale did not include Dexia’s exposure to some 16.5 billion Euro exposure to toxic US subprime mortgage assets. This brings more assets to Ross who has been looking at purchasing more monoline insurers for his Assured Guaranty.

Monoline Exposure Will Hurt 2Q Earnings

Rail — Fri, 20 Jun 2008 12:16:29 +0000

It seems likely that losses from monoline exposure could impact second quarter earnings by nearly $10 billion, nearly doubly the previous loss amount. The hardest hit among financial companies will likely be Citigroup (NYSE: C), Merrill Lynch (NYSE: MER), and UBS (NYSE: UBS). Such is the latest from Meredith Whitney from Oppenheimer. It is likely that Citigroup will post another loss, perhaps has high as $.50 per share, compared to previously expected quarter in the black.

Monoline Insurers Downgraded

Rail — Fri, 06 Jun 2008 15:16:47 +0000

Finally. Standard & Poor’s downgraded monoline bond insurers MBIA (NYSE: MBI) and Ambac (NYSE: ABK) to AA from AAA on June 5. This seemingly went over as a nonevent on Wall St. yesterday and one has to wonder - Moody’s (NYSE: MCO) what are you waiting for now? The credibility of these ratings agencies is all be kaput. This will affect around $1 trillion in bonds.

The (Un)Magical Nature of Bond Insurance

Rail — Wed, 07 May 2008 18:38:21 +0000

Dealbreaker has an interesting post today regarding bond insurance and how average retail investors, who own most of the municipal bonds out there, may be prone to thinking that this insurance means more than it actually does.

California & Co To Join Municipal Bond Insurance Business

Rail — Mon, 28 Apr 2008 17:34:25 +0000

Some of the most esteemed investors have already joined the municipal bond business - Buffet and Ross. Now enters California & Co. The California Public Employees Retirement System has included said creation on the May agenda. Given the large amount of cash in pension funds and the high need of bond insurance for California projects, it seems like a logical fit.