MBIA: still one of the shakiest triple-As
Monoline insurer MBIA, nearly drowned by losses on subprime mortgage-related securitisations, appears to have hoisted itself out of the river and be crawling, still covered in mire, up on to the bank. Could it slip back? Look closely at its numbers and you may not be filled with confidence.
Monoline bond insurer MBIA announced a $2.4bn first quarter loss on Monday, yet by the end of the day its share price had gained nearly 10% and its credit default swaps tightened by 70bp from around 860bp.
Investors clearly took heart from the companys revelation that it had wrapped
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