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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (32617)	4/8/2008 6:07:02 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217868

The problem with the Muni bond insurance business of Ambac etc was the fact that losses in their Mortgage backed bond / credit swap insurance business was losing them their AAA rating. If they don't have a AAA rating themselves, they have nothing to sell to a Muni bond issuer or buyer. This is why their ultimate solution is to split their business into three parts which the New York insurance commissioner came days away from ordering. Warren Buffett has entered the business, but is charging a premium which is 350% more than Ambac et al were charging. If the muni bond insurance businesses were free-standing, there would be nothing wrong with them. .