#1 Bond Insurer MBIA Loses $2.4 Billion
MBIA reported losses totaling $4.74 billion in the past three quarters,
mainly on CDOs it guaranteed through credit- default swap contracts.
Today, MBIA announced a Q1 loss of $2.4 billion, largely due to a $3.6 billion pretax loss on insured credit derivatives.
The ailing bond insurer will pump $900 million into its insurance unit.
MBIA posted a 43% drop in net premiums written, the company expects to pay more than $1 billion in additional claims,
including $827 million of actual losses from paying claims on nine CDO transactions and $265 million on bonds backed by mortgages.
So-called Level 3 assets, those that are most difficult to value, totaled $7.3 billion in Q1, the stock has slumped 87% in the past year.
Hattip to Bloomberg.
mainly on CDOs it guaranteed through credit- default swap contracts.
Today, MBIA announced a Q1 loss of $2.4 billion, largely due to a $3.6 billion pretax loss on insured credit derivatives.
The ailing bond insurer will pump $900 million into its insurance unit.
MBIA posted a 43% drop in net premiums written, the company expects to pay more than $1 billion in additional claims,
including $827 million of actual losses from paying claims on nine CDO transactions and $265 million on bonds backed by mortgages.
So-called Level 3 assets, those that are most difficult to value, totaled $7.3 billion in Q1, the stock has slumped 87% in the past year.
Hattip to Bloomberg.
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