Dark clouds lifting?
The FT reports:
That may well be true, but the share prices don't reflect it. Courtesy of Bloomberg:
This is turning into a complicated and difficult to navigate mixture of politics and economics. On a mark-to-market basis the largest monolines are almost certainly not AAA -- but they are not mark-to-market players. Their leverage is terrifying. But they have powerful friends, and it is increasingly being seen to be in the industry's interests that they survive at least in run-off if not as fully fledged players. Muni insurance is getting tougher with some states opting out entirely and Buffett soaking up much of the other business.
The dark cloud of uncertainty over the credit ratings of bond insurers Ambac and MBIA is slowly lifting, and sentiment in the credit markets and stock markets is improving as a result.
Moody’s Investors Service and Standard and Poor’s this week reconfirmed the triple-A ratings for MBIA. Standard and Poor’s had also confirmed its top rating for Ambac, where discussions continue about a deal with banks to inject fresh funds and restructure its business.
That may well be true, but the share prices don't reflect it. Courtesy of Bloomberg:
This is turning into a complicated and difficult to navigate mixture of politics and economics. On a mark-to-market basis the largest monolines are almost certainly not AAA -- but they are not mark-to-market players. Their leverage is terrifying. But they have powerful friends, and it is increasingly being seen to be in the industry's interests that they survive at least in run-off if not as fully fledged players. Muni insurance is getting tougher with some states opting out entirely and Buffett soaking up much of the other business.
Labels: Monoline
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