Items Tagged with 'Ambac Financial Group Inc.'

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  • Bond Insurers Post Losses on Weak RMBS

    Bond insurer MBIA Inc. [stock MBI][/stock] said late Monday it had recorded a $2.7 billion net loss -- or $12.29 per share -- for the full year 2008, up from the $1.9 billion -- or $15.17 per share -- lost in all of 2007. The company said it saw $1.2 billion lost in the fourth quarter alone, although this figure showed a decline from year-ago levels, when the company posted a $2.3 billion net loss in the fourth quarter 2007.
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  • Ambac Sees Ratings Cut, Commutes CDO Deals

    Tired of hearing about CDOs yet? So are we. But the monoline bond crisis is still there, still generating downgrades -- and on Tuesday, Standard & Poor's Ratings Services cut Ambac Financial Group Inc.'s [stock ABK][/stock] core credit rating further, citing concerns over continuing exposure to bad mortgages. The agency also cut the financial strength rating of the company's bond insurance subsidiary, Ambac Assurance, to "A."
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  • Moody's Takes the Axe to Ambac, Again

    Those with a memory for the current credit crisis may recall the brouhaha caused by downgrades to monoline bond insurers a few months back. Moody's Investors Service reminded markets on Wednesday evening that the monoline crisis hasn't yet passed, downgrading Ambac Financial Group, Inc. [stock ABK][/stock] and core insurer financial strength ratings of its financial guaranty subsidiaries after the company posted a $2.4 billion Q3 loss earlier in the day.
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  • Ambac Posts $2.4 Billion Q3 Loss on "False" MBS Recovery

    Ambac Financial Group, Inc. [stock ABK][/stock] said Wednesday morning that it lost $2.4 billion, $8.45/share, as it absorbed at least $3 billion in write-downs and costs to pay anticipated claims amid further deterioration in the U.S housing market. The quarterly loss widened a $360 million, or $3.53 a share, loss from a year earlier, and were far greater than analysts had expected -- leading shares to fall more than 25 percent in early trading on Wednesday.
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  • MBIA Posts "Phantom Profit" as CDS Spreads Blow Up

    In another example of how often arcane accounting standards can obscure reality for everyday investors, besieged monoline insurer MBIA, Inc. [stock MBI][/stock] reported a surprise profit of $1.7 billion, or $7.14 per share, for the second quarter; but the profit was largely the result a $3.3 pre-tax paper gain tied to a substantial widening of credit default swap spreads on MBIA itself during the second quarter.
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  • More Write-Downs Ahead for Citi?

    Shares in Citigroup Inc. [stock C][/stock] fell sharply Thursday after Goldman Sachs Group [stock GS][/stock] analyst William Tanoma singled the firm out for more mortgage-led losses in its upcoming Q2 earnings report, saying that the firm could take writedowns of as much as $8.9 billion in the quarter.
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  • Bond Insurers Looking to Unwind $125 Billion in CDO Contracts

    The latest twist and turn in the wake of now widespread bond insurer downgrades is that some of the largest -- notably MBIA Inc. [stock MBI][/stock] and Ambac Financial Group, Inc. [stock ABK][/stock] -- are looking to essentially wipe out $125 billion in insurance on collateralized debt obligations tied to subprime and other mortgages that have likely gone permanently bad.
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  • Cost of a Downgrade: MBIA Warns of $7.4 Billion Loss

    It didn't take long for last week's downgrade of monoline bond insurer MBIA Inc. [stock MBI][/stock] to hit the firm's bottom line; the company said late Friday that it will likely have to post $7.4 billion in payments and collateral tied to its asset management business -- a separate business line that underscores the complexity of the business structure at large monline insurers.
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