Friday, Jan 25, 2008
Rodneey, can you lend me a tenner?
Times Online: Mortgage bond insurers 'need $200bn boost'
America's biggest mortgage bond insurers collectively need a $200 billion (£101 billion) capital injection if they are to maintain their key AAA credit ratings, a figure that dwarfs a plan by New York regulators to put together a capital infusion of up to $15 billion, a leading ratings expert said yesterday. The failure to maintain their AAA ratings will lead to a further round of multibillion-dollar writedowns among the Wall Street banks and other large owners of the bonds,
Posted by alan @ 04:21 PM (439 views) Add Comment
4 Comments
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1. paul said...
Not a hope. Bye bye AAA rating.
2. inbreda said...
I think the word they are after is "junk"
3. Andyh said...
This is the KEY issue that will keep coming back to haunt the markets. It was the threat to the monolines from the first downgrade a week or so ago which triggered the really big falls in the markets. I think it is inevitable (and in fact it should have already happened) that further downgrades will come - then downward momentum will return.
4. yorkshireman said...
Do any of the insitutions or regulators have a clue about the real situation ? 15 billion on Wednesday, 200 billion on Friday. What next and who will pay ?