Comments on: Bond Insurer Death Watch Continues http://www.nakedcapitalism.com/2008/01/bond-insurer-death-watch-continues.html Sun, 22 Nov 2009 11:45:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Yves Smith http://www.nakedcapitalism.com/2008/01/bond-insurer-death-watch-continues.html#comment-3093 Yves Smith Thu, 17 Jan 2008 04:21:00 +0000 http://www.nakedcapitalism.com/2008/01/bond-insurer-death-watch-continues/#comment-3093 foesskewered,<br/><br/>That's how I read it too, It may be poor drafting on the part of the journalist; I've seen that upon occasion.<br/><br/>The assumption may be that if they survive the next few months, it will be by virtue of adequate fundraising. Events won't bail them out. foesskewered,

That’s how I read it too, It may be poor drafting on the part of the journalist; I’ve seen that upon occasion.

The assumption may be that if they survive the next few months, it will be by virtue of adequate fundraising. Events won’t bail them out.

]]> By: foesskewered http://www.nakedcapitalism.com/2008/01/bond-insurer-death-watch-continues.html#comment-3092 foesskewered Thu, 17 Jan 2008 04:12:00 +0000 http://www.nakedcapitalism.com/2008/01/bond-insurer-death-watch-continues/#comment-3092 Yves<br/>Read the same bloomberg articles, what was a little confusing was the explanation for the inversion - that investors thought shoulkd these bond insurers survive the next few months, their "creditworthiness" would recover, hence the lower premiums for the 5 year contracts. Is it as simple as that? The way things look, it would be really tough for any rapid recovery of the situation, if that's the case and these companies don't survive the next couple of months, won't the 5 year contracts (cds) be worthless? Dumb questions but that's me on a good day. Yves
Read the same bloomberg articles, what was a little confusing was the explanation for the inversion – that investors thought shoulkd these bond insurers survive the next few months, their “creditworthiness” would recover, hence the lower premiums for the 5 year contracts. Is it as simple as that? The way things look, it would be really tough for any rapid recovery of the situation, if that’s the case and these companies don’t survive the next couple of months, won’t the 5 year contracts (cds) be worthless? Dumb questions but that’s me on a good day.

]]>