December 21, 2007 |
The country's largest bond insurer shocked financial markets Thursday with a disclosure about its exposure to risky mortgage-related securities, sending its shares plunging and calling into question the safety of tens of billions of dollars of corporate and local government debt held by investors. MBIA Inc. said that of the $30 billion in complex mortgage securities it insured, about $8 billion was of the type viewed as most risky.
December 20, 2007 |
Billions of dollars of municipal bonds insured by ACA Financial Guaranty Corp. were cut to "junk" status Wednesday after Standard & Poor's downgraded the insurer itself because of its exposure to losses on mortgage-backed debt. S&P slashed its rating on ACA Financial to CCC from A, which already was the lowest rating among bond insurers. S&P said ACA's capital cushion of $650 million was $2.2 billion short of what it needed to cover potential losses.
December 11, 2007 |
A stream of cash from private investors into banks and other companies that have been hurt by the sub-prime mortgage crisis is raising hope that battered financial stocks have hit bottom. Swiss banking giant UBS and No. 1 bond insurer MBIA Inc. on Monday became the latest financial companies to attract money from outside investors to fortify their capital in the face of expected mortgage-related losses. Similar cash-raising moves were announced in recent weeks by Citigroup Inc.
December 6, 2007 |
A capital shortfall at MBIA Inc. is "somewhat likely," Moody's Investors Service warned Wednesday, sending the bond insurer's already-pummeled shares down 16%. A review of MBIA's residential mortgage-backed portfolio showed that the company was at greater risk of falling short of the capital needed for a top AAA rating than earlier believed, Moody's said in a statement. MBIA shares tumbled $5.21 to $27.42 on the news. The stock of rival bond insurer Ambac Financial Group Inc. shed $2.30, or 8.
August 5, 2003 |
General Electric Co. said Monday that it would sell its bond insurance unit to an investor group led by mortgage insurer PMI Group Inc. for about $1.9 billion, bolstering PMI's ability to provide credit analysis and risk assessment. The transaction would allow GE's Financial Guaranty Insurance Co. to operate independently, owned in part by five different entities, including a small stake by GE. It also would allow Walnut Creek, Calif.
April 7, 2001 |
Pacific Gas & Electric Co.'s bankruptcy filing sparked a sell-off in stocks of the utility's major lenders, power suppliers and bond insurers Friday, as investors feared that the companies' earnings would be hurt by the reorganization and that Southern California Edison might take the same route. Shares of the utilities' own parent companies, PG&E Corp.
May 21, 1995 |
A plan to raise $275 million to help repay cash-strapped Orange County school districts now faces an unexpected glitch because several of the county's creditors on Friday challenged a recovery bonds sale that would raise partial repayments for the schools. Last Monday, MBIA Insurance Inc.
May 16, 1995 |
Bankrupt Orange County found a crutch Monday to help it limp back to Wall Street when the nation's largest municipal bond insurer agreed to back $275 million in recovery bonds needed to repay 200 cities, school districts and special districts that had money in the county's collapsed investment pool. With MBIA Insurance Corp. on board, the county is planning a "road show" to drum up buyer interest in the 30-year, tax-exempt bonds during the last week in May.
December 16, 1994 |
Shaken by the Orange County bankruptcy filing, bond investors are shopping for safety. "They're scared to death," said James Gammon, president of Lebenthal Asset Management in New York, which manages municipal bond portfolios for wealthy individuals, mainly in the Northeast. Experts expect investors to focus on cutting risk instead of maximizing yields, which could be good news for the bond insurance industry.
April 20, 1993 |
Transamerica Insurance Group has ordered its Completion Bond Co. unit to stop issuing insurance coverage on motion picture productions until Transamerica goes public. What isn't known is whether the unit will resume writing new business after the stock sale. Transamerica Insurance, a property-casualty insurer based in Woodland Hills, is a subsidiary of Transamerica Corp., the San Francisco financial services giant. But Transamerica Insurance's newly created parent, TIG Holdings Inc.