February 7, 2008
Bond Insurers Seek to Maintain Ratings
Fitch Ratings estimates that bond insurers collectively are exposed to about $100 billion in CDOs backed by deteriorating subprime mortgage collateral. Efforts to prevent drastic downgrades in the triple-A rating essential to a bond insurer's business are underway. MBIA says it will sell $750 million of common shares to raise capital. Consortia of banks are working on rescue plans for FGIC and Ambac. WSJ, Rescue Plans Won't Prevent Downgrades.
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