Wednesday, March 5, 2008
Ambac to basics
Ambac, one on the largest bond insurers in the US pulls out of the structured product market and returns to the basics of guaranteeing bonds. Interestingly, the rating agency Fitch responds immediately by saying that Ambac is still on negative watch until uncertainties have abated. Sounds to me like Ambac is runnning as fast as it can to stand still, and is very close to stopping completely. Another major step in the return to normality from the credit bubble years.