(Bloomberg) -- The perceived risk of holding the
bonds of MBIA Inc. and AMBAC Financial Group Inc., owners of the
two largest AAA rated bond insurance companies, has jumped to
speculative grade on worries about subprime-mortgage defaults.
Credit-default swaps based on $10 million of MBIA's bonds
more than doubled in the past month to $114,000, while Ambac
contracts tripled to $91,000, according to CMA Datavision in
London. Those levels imply a credit rating of Ba2 for MBIA and
Ba1 for Ambac, the two highest junk ratings, according to the
credit-strategy group at Moody's Investors Service.
Read more at Bloomberg Bonds News
bonds of MBIA Inc. and AMBAC Financial Group Inc., owners of the
two largest AAA rated bond insurance companies, has jumped to
speculative grade on worries about subprime-mortgage defaults.
Credit-default swaps based on $10 million of MBIA's bonds
more than doubled in the past month to $114,000, while Ambac
contracts tripled to $91,000, according to CMA Datavision in
London. Those levels imply a credit rating of Ba2 for MBIA and
Ba1 for Ambac, the two highest junk ratings, according to the
credit-strategy group at Moody's Investors Service.
Read more at Bloomberg Bonds News
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