The two largest debt-to Ambac and MBIA situation is still worrying
The two major U.S. bond insurer Ambac and MBIA has not yet faced from the AAA rating lowered the risk of going out, they are also facing new competitive pressures. Last Friday, small bond insurance companies have been declared bankrupt AGO Ross King injection of 1 billion U.S. dollars.
Official king of the Ross said last Friday agreed to buy the bond insurer AGO a total of 1 billion U.S. dollars in equity. Ross will buy the new AGO issued ordinary shares of 250 million U.S. dollars, the company after the acquisition shares will account for more than 10 percent.
Ross promised, as long as the AGO to maintain the current rating, will buy 750 million U.S. dollars worth of stock. Ross will enter AGO Board of Trustees. Of the current market price, Ross is expected to holders of the company 1 / 3 stake.
The deal is expected before the end of March approved. Ross was expected before the outside world will invest MBIA or Ambac, and so on a larger scale of the bond insurer, but AGO relative financial stability, for a relatively small amount of stop-loss, Ross chose the latter.
In addition, the bond insurer Ambac announced the same day, in the next six months, to stop underwriting the complex structure of financial services, and reduce the dividend, to restore the funding level. The company estimates this will raise about 600 million U.S. dollars of capital. MBIA has previously announced similar measures. In response, Moody's said, Ambac's capital than the average standard AAA low 2 billion U.S. dollars, but still meet the minimum requirements for AAA rating. But on the next run, Ambac level of funding may .
According to statistics, Ambac insured Citigroup has issued 7.5 billion U.S. dollars of unsecured debt securities (CDO), of which 6.9 billion U.S. dollars the value of CDO rapid landslide, has entered a state of default, Ambac may have to pay the aftermath. Am-bac, MBIA FGIC, such as bonds and the insurer in the loan-to-crisis as a result of underwriting CDO such as the structural financial products, suffered huge losses, totalling about 2.4 trillion U.S. dollars underwriting bonds default payments. Ambac has insured CDO for more than 50 billion dollars to pay the price.
Ross investment by the news, last Friday AGO shares rose 12.60 percent to 25.65 U.S. dollars, over the past year the stock has plummeted nearly 18%; Ambac fell 5.6 percent to 11.14 U.S. dollars, the Unit over the past year have dropped 85 percent; MBIA over the past year decreased by 80%.
The two major U.S. bond insurer Ambac and MBIA has not yet faced from the AAA rating lowered the risk of going out, they are also facing new competitive pressures. Last Friday, small bond insurance companies have been declared bankrupt AGO Ross King injection of 1 billion U.S. dollars.
Official king of the Ross said last Friday agreed to buy the bond insurer AGO a total of 1 billion U.S. dollars in equity. Ross will buy the new AGO issued ordinary shares of 250 million U.S. dollars, the company after the acquisition shares will account for more than 10 percent.
Ross promised, as long as the AGO to maintain the current rating, will buy 750 million U.S. dollars worth of stock. Ross will enter AGO Board of Trustees. Of the current market price, Ross is expected to holders of the company 1 / 3 stake.
The deal is expected before the end of March approved. Ross was expected before the outside world will invest MBIA or Ambac, and so on a larger scale of the bond insurer, but AGO relative financial stability, for a relatively small amount of stop-loss, Ross chose the latter.
In addition, the bond insurer Ambac announced the same day, in the next six months, to stop underwriting the complex structure of financial services, and reduce the dividend, to restore the funding level. The company estimates this will raise about 600 million U.S. dollars of capital. MBIA has previously announced similar measures. In response, Moody's said, Ambac's capital than the average standard AAA low 2 billion U.S. dollars, but still meet the minimum requirements for AAA rating. But on the next run, Ambac level of funding may .
According to statistics, Ambac insured Citigroup has issued 7.5 billion U.S. dollars of unsecured debt securities (CDO), of which 6.9 billion U.S. dollars the value of CDO rapid landslide, has entered a state of default, Ambac may have to pay the aftermath. Am-bac, MBIA FGIC, such as bonds and the insurer in the loan-to-crisis as a result of underwriting CDO such as the structural financial products, suffered huge losses, totalling about 2.4 trillion U.S. dollars underwriting bonds default payments. Ambac has insured CDO for more than 50 billion dollars to pay the price.
Ross investment by the news, last Friday AGO shares rose 12.60 percent to 25.65 U.S. dollars, over the past year the stock has plummeted nearly 18%; Ambac fell 5.6 percent to 11.14 U.S. dollars, the Unit over the past year have dropped 85 percent; MBIA over the past year decreased by 80%.
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