Comments on: MBIA 14% Notes Fall 12% in One Week http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week.html Mon, 23 Nov 2009 10:17:20 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week.html#comment-13074 Anonymous Sun, 17 Aug 2008 14:44:00 +0000 http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week/#comment-13074 Has MBIA run out of cash yet? It is now August 17. <br/><br/>If Bill Ackman says MBIA going to run out of cash, then it must be true - correct? Has MBIA run out of cash yet? It is now August 17.

If Bill Ackman says MBIA going to run out of cash, then it must be true – correct?

]]> By: Will T http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week.html#comment-3089 Will T Wed, 16 Jan 2008 22:59:00 +0000 http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week/#comment-3089 William Ackman of Pershing Square Capital Management talked about MBIA on Bloomberg last Thursday. I highly recommend watching the interview.<br/><br/><a HREF="http://www.youtube.com/watch?v=wvI3xZK34Tg" REL="nofollow">Bill Ackman on YouTube</a><br/><br/>Highlights:<br/>* MBIA's numbers are presented net of reinsurance. About half of the reinsurance comes from Channel Re (rated AAA with $300 million capital)<br/>* MBIA helped set up ChannelRe in 2004 with a <a HREF="http://www.badfaithinsurance.org/reference/General/0236a.htm" REL="nofollow">17.4% ownership stake</a>. ChannelRe provides reinsurance services exclusively to MBIA.<br/>* MBIA shifted their riskiest exposures to ChannelRe. ChannelRe expects <a HREF="http://www.reuters.com/article/marketsNews/idUKWNAS670820080116?rpc=44" REL="nofollow">$200 million in credit impairments</a> from a $3.3 billion mark-to-market charge at MBIA.<br/>* $42.2 billion of MBIA's reinsurance is from ChannelRe.<br/>* MBIA needs to raise in excess of $10 billion of capital, depending on circumstances.<br/>* If MBIA does not cut the dividend and cannot access cash held at its investment management subsidiary, they run out of cash at the end of this June. If they are able to access the cash, they run out of money by the end of this year.<br/><br/>His presentation can be found here:<br/><a HREF="http://pershingsquare.valueinvestingcongress.com/" REL="nofollow">http://pershingsquare.valueinvestingcongress.com/</a> William Ackman of Pershing Square Capital Management talked about MBIA on Bloomberg last Thursday. I highly recommend watching the interview.

Bill Ackman on YouTube

Highlights:
* MBIA’s numbers are presented net of reinsurance. About half of the reinsurance comes from Channel Re (rated AAA with $300 million capital)
* MBIA helped set up ChannelRe in 2004 with a 17.4% ownership stake. ChannelRe provides reinsurance services exclusively to MBIA.
* MBIA shifted their riskiest exposures to ChannelRe. ChannelRe expects $200 million in credit impairments from a $3.3 billion mark-to-market charge at MBIA.
* $42.2 billion of MBIA’s reinsurance is from ChannelRe.
* MBIA needs to raise in excess of $10 billion of capital, depending on circumstances.
* If MBIA does not cut the dividend and cannot access cash held at its investment management subsidiary, they run out of cash at the end of this June. If they are able to access the cash, they run out of money by the end of this year.

His presentation can be found here:
http://pershingsquare.valueinvestingcongress.com/

]]> By: RK http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week.html#comment-3088 RK Wed, 16 Jan 2008 22:21:00 +0000 http://www.nakedcapitalism.com/2008/01/mbia-14-notes-fall-12-in-one-week/#comment-3088 Although the economy may be undergoing a temporary pause, reservations at The Woodshed, always a hot ticked, have been harder to come by than ever. Greenspan could only get in because <br/>Kaufman had some pull. Bernanke has been a frequent guest. Thanks to some string puling by the monolines, Anonymous was recently admitted.<br/>I'm still angling for my reservation. I hear the thin watery gruel is fabulous. Although the economy may be undergoing a temporary pause, reservations at The Woodshed, always a hot ticked, have been harder to come by than ever. Greenspan could only get in because
Kaufman had some pull. Bernanke has been a frequent guest. Thanks to some string puling by the monolines, Anonymous was recently admitted.
I’m still angling for my reservation. I hear the thin watery gruel is fabulous.

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