Wednesday, July 2, 2008

The Great Unwind Continues

Ambac trading halted in New York after shares slide to $1.04

Ambac, the world’s second-biggest bond insurer, stopped trading on the New York Stock Exchange in a “subpenny halt'’ after its share price fell as low as $1.04. Ambac declined 3 cents, or 2.5 per cent, to $1.15 in over- the-counter trading at 1:39 p.m. in New York. Ambac, which was stripped of all three of its AAA rankings from the largest credit-rating companies, has tumbled 99 percent in the past year

Posted by gardeniadotnet @ 07:51 PM (624 views)
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One thought on “The Great Unwind Continues

  • These Bond Insurers promise to repay bond holders in the event of default using their AAA credit ratings to guarantee lower rated debt. Because they were allowed to guarantee mortgage related bonds, they are effectively ruined. They don’t have enough capital, no new business and the value of their bonds declines. Next hedge funds. It has to be bail-out time again. Print more money.
    Enter Warren Buffett to finish them off.

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