Both the bond insurers situation is deteriorating...
Ambac (ABK) and MBIA (MBI) both reported widening Q3 and 9 month
Ambac reported and announced third quarter 2008 net loss of $2,431.2 million, or net loss of $8.45 on a per share basis. This compares to third quarter 2007 net loss of $360.6 million, or net loss of $3.53 on a per share basis. The increased net loss in the third quarter of 2008 is primarily due to recording net mark-to-market losses on credit derivatives, increased loss provisioning primarily related to second-lien residential mortgage-backed securities (RMBS) insurance transactions and market losses on RMBS within the financial services investment portfolio, partially offset by increased accelerated premiums from refundings.
MBIA (MBI) reported a net loss of $1.5 billion, or $6.97 per share, for the first nine months of 2008, compared with net income of $373.8 million, or $2.84 per share, during the same period in 2007. The Company recorded a net loss of $806.5 million, or $3.48 per share, for the third quarter of 2008, driven primarily by increases to loss reserves on the Company’s second lien residential mortgage exposures and net realized and unrealized losses attributable to the Company’s Asset Liability Management (ALM) business. The net loss for the third quarter of 2007 was $36.6 million or $0.30 per share.
Ambac
One has to wonder how long this can go on...
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