Monday, Feb 25, 2008
Does this solve the problem?
New York Times: Ambac Rescue May Be Announced Mon Or Tues: Source
A rescue for bond insurer Ambac Financial Group Inc
Posted by waitingfor hpc @ 11:11 AM (207 views) Add Comment
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. guiriduro said...
Isn't going to happen, at least not at the point where "guaranteed" subprime CDOs keep their ratings. This is a rescue of the municipal bonds guarantee business, which is kind of daft because these bonds hardly need guarantee and would probably receive an AAA rating as an asset class without a bond insurer going forward.
It cuts off the toxic part of the business, but it doesn't stop that part being toxic, it just stops it infecting the muni bond ratings. Kind of the difference between really bad (subprime debt fall-out with bank insolvency issues - likely a significant long lasting recession), and awful (subprime debt fallout, bank insolvency AND municipal authority bankruptcies - basically another depression.) So, either way the muni business will be saved, because it doesn't really need insurance, but the story for most areas of commercial debt will still be really bad.