Bonds

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.