MBIA & Ambac Lose AAA Rating - Cascade
We've Nattering before about bond insurers MBIA & Ambac losing their AAA rating and what would "cascade" to the "AAA" debt they insure.... here comes the first slipper re: MBIA...
MBIA five-level downgrade by Moody's Investors Service probably will force it to make $7.4 billion of payments and collateral postings.
MBIA has $15.2 billion of assets available to satisfy the requirements, that includes:
$4 billion in cash and short-term investments, $1 billion of unpledged collateral and $10.2 billion of other securities.
In its report downgrading the debt, Moody's said MBIA faced payments and collateral calls triggered by the reduction.
Hattip to Bloomberg.
MBIA five-level downgrade by Moody's Investors Service probably will force it to make $7.4 billion of payments and collateral postings.
MBIA has $15.2 billion of assets available to satisfy the requirements, that includes:
$4 billion in cash and short-term investments, $1 billion of unpledged collateral and $10.2 billion of other securities.
In its report downgrading the debt, Moody's said MBIA faced payments and collateral calls triggered by the reduction.
Hattip to Bloomberg.
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