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rffrydr
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rffrydr
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rffrydr
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rffrydr
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 Posted: Thu Aug 06, 2009 7:54 am Post subject: |
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Huge move in AIG, ABK et. al.: The write-up recovery is on.
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rffrydr
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rffrydr
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rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 11502
Location: Sunny California
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rffrydr
Moderator
Joined: 30 Oct 2005
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Location: Sunny California
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rffrydr
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rffrydr
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Location: Sunny California
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| Posted: Mon Mar 16, 2009 8:09 am Post subject: |
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Bailout creep or bank's "ace-in-the-hole"?
| Quote: | ...The efforts have met limited success. In the fourth quarter, MBIA negotiated commutations or restructuring of four contracts on $2.7 billion of the securities called collateralized debt obligations or CDOs that have been responsible for significant losses. MBIA still holds $27.7 billion of CDOs that contain at least some troubled loans.
Brown has pushed for counterparties to negotiate more commutations.
"In almost all cases, these are the exact same large financial institutions that have already received tens of billions in government money for these exact same losses," Brown said during the company's fourth-quarter earnings conference call last month.
A group of hedge funds that hold bonds insured by MBIA filed a class action lawsuit in New York federal court Wednesday that seeks to reverse the restructuring. A lead attorney for the suit said he is trying to persuade derivatives counterparties to join the suit. |
http://money.cnn.com/news/newsfeeds/articles/djf500/200903131723DOWJONESDJONLINE000909_FORTUNE5.htm
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rffrydr
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rffrydr
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rffrydr
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nodoodahs
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| Posted: Fri Feb 13, 2009 6:59 pm Post subject: |
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| Quote: | MarketWeek: The monolines are dead. Long live the monolines!
February 13, 2009 7:10 PM ET
By Tim Zawacki
The demise of the role of the monoline bond insurers in the structured finance market is either a great exaggeration or a virtual inevitability. It just depends on who you ask.
For some investors in asset-backed securities, the actions taken by rating agencies in 2008 to strip several of the insurers — most notably Ambac Financial Group Inc. unit Ambac Assurance Corp. and MBIA Inc. unit MBIA Insurance Corp. — of their coveted AAA financial strength grades essentially signaled the downfall of the monoline business model, if not their role in the market altogether.
A panel discussion at the American Securitization Forum's ASF 2009 in Las Vegas addressed the issue and, not surprisingly, elicited skepticism from investors and optimism from the insurers.
Joel Telpner of Mayer Brown LLP said that he believes the industry "will continue to play an important role going forward." Diana Adams, senior managing director at Ambac Assurance, defended her company's outlook.
"In a risk-averse environment, it's hard to believe there's not additional value in those products we provide," she said, pointing out that monolines have traditionally provided due diligence, monthly surveillance and other valuable services on transactions they wrap, in addition to the key selling point of their hallmark AAA ratings. |
| Quote: |
From the buy-side perspective, Frank Frezioso, partner and managing director at One William Street Capital, a fixed-income hedge fund launched in 2008 to target asset-based investments, believes monolines increased the depth of the investor base for asset-backed securities.
"An ABS market without the monolines may limit the scale of the securitization market and the depth of the investor base," he said. But, Frezioso added ominously, "Some securities are trading at a lower value in the secondary market with a monoline wrap than without." It's a counterintuitive phenomenon he attributes to a control premium being assigned by investors.
"Monoline-wrapped deals are controlled by the monoline," he said. "Control comes at a premium. It's worth something to me."
Both insurers and investors are unsure what the role of the monoline will be in either the short or long term. They agreed that the Feb. 10 announcements by U.S. Treasury Secretary Timothy Geithner offered nothing that would serve to clear up the situation. The Treasury plan also lacked any support, financial or otherwise, to the monoline industry, Telpner noted.
... |
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rffrydr
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