Wednesday, Oct 24, 2007
Oh dear - they were the GUARANTOR of CDOs.....
Bloomberg: Ambac Posts First Loss as Subprime Bond Prices Drop (Update3)
Oct. 24 (Bloomberg) -- Ambac Financial Group Inc., the world's second-largest bond insurer, reported its first quarterly loss after reducing the value of subprime mortgage-linked securities the company guarantees by $743 million. The shares fell the most in 2 1/2 years after New York-based Ambac said it had a third-quarter net loss of $360.6 million, or $3.51 a share, compared with net income of $213 million, or $1.98, a year earlier, according to a company statement. Ambac guarantees payments on collateralized debt obligations, promising to pay CDO holders in the event of a default. The value of that insurance has tumbled in line with a slump in the price of CDOs backed by subprime mortgages. Ambac said Oct. 10 that it may report a loss after marking down the value of the securities.
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
Those people who can't pay mortgages in California seem to have a way out.....
... The house catches fire.