*T*
01-21-08, 04:57 AM
I had to share these:
AMBAC and MBIA, two big monoline credit insurance companies, lose their AAA ratings and are now worth somewhat less than they were. Any CDS / bond insurance written by these companies is now almost worthless. The implied risk of default (from the equity price) is about 70% in the next 5 years.
Bloomberg: Corporate Default Risk Soars to Record on Ambac Ratings Cut (http://www.bloomberg.com/apps/news?pid=20601087&sid=aPGxGdMliZok&refer=home)
http://liceor.wordpress.com/files/2008/01/mbia.gif
http://liceor.wordpress.com/files/2008/01/ambac.gif
AMBAC and MBIA, two big monoline credit insurance companies, lose their AAA ratings and are now worth somewhat less than they were. Any CDS / bond insurance written by these companies is now almost worthless. The implied risk of default (from the equity price) is about 70% in the next 5 years.
Bloomberg: Corporate Default Risk Soars to Record on Ambac Ratings Cut (http://www.bloomberg.com/apps/news?pid=20601087&sid=aPGxGdMliZok&refer=home)
http://liceor.wordpress.com/files/2008/01/mbia.gif
http://liceor.wordpress.com/files/2008/01/ambac.gif