Comments on: MBIA, Ambac Lose AAA from S&P http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html Sun, 22 Nov 2009 03:53:33 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9058 Anonymous Fri, 06 Jun 2008 00:48:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9058 Since these corps are definitely subprime, does that mean AA rating is now a junk classification? Since these corps are definitely subprime, does that mean AA rating is now a junk classification?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9057 Anonymous Thu, 05 Jun 2008 23:37:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9057 FYI, Macquarie Group are following Berkshire and setting up a new bons insurance company: <br/><br/>http://business.smh.com.au/macquarie-to-enter-us-bond-insurance-market-20080606-2mgg.html FYI, Macquarie Group are following Berkshire and setting up a new bons insurance company:

http://business.smh.com.au/macquarie-to-enter-us-bond-insurance-market-20080606-2mgg.html

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9056 Anonymous Thu, 05 Jun 2008 23:24:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9056 Don't worry. They gave the banks 3 mo to get into new CDS contracts issued by those who are feeding at the trough. Don’t worry. They gave the banks 3 mo to get into new CDS contracts issued by those who are feeding at the trough.

]]> By: Pablo http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9055 Pablo Thu, 05 Jun 2008 23:06:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9055 When this companies are downgraded, what they insurance is downgraded, as a result, more money has to be put as collateral!!!!<br/>By bye banks. When this companies are downgraded, what they insurance is downgraded, as a result, more money has to be put as collateral!!!!
By bye banks.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9049 Anonymous Thu, 05 Jun 2008 19:37:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9049 Don't all the pension funds have to sell the bonds now that they are not AAA anymore? Don’t all the pension funds have to sell the bonds now that they are not AAA anymore?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9048 Anonymous Thu, 05 Jun 2008 19:27:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9048 BFD BFD

]]> By: Peripheral Visionary http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-s.html#comment-9047 Peripheral Visionary Thu, 05 Jun 2008 19:22:00 +0000 http://www.nakedcapitalism.com/2008/06/mbia-ambac-lose-aaa-from-sp/#comment-9047 I'm not sure this will have any significant impact beyond limiting the amount of new business the insurers would be able to do. I suspect most of the pension plans with "AAA only" rules will find ways around those rules to avoid forced sales. And I suspect that many of the obligations of the insurers simply won't get paid out--in the end, the whole bond insurance concept will have simply been a fiction. I’m not sure this will have any significant impact beyond limiting the amount of new business the insurers would be able to do. I suspect most of the pension plans with “AAA only” rules will find ways around those rules to avoid forced sales. And I suspect that many of the obligations of the insurers simply won’t get paid out–in the end, the whole bond insurance concept will have simply been a fiction.

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