Quoting the Crisis30/09/2009
» S&P cuts MBIA bond-insurance unit to junk
Once again, the ratings agencies show just how ahead of the curve they are. MBIA, who made their earnings by insuring mortgage-backed securities, requires a solid credit rating to generate any new business. Let’s see how the runoff business works out for them.
In other news, Unprecedented U.S. corporate default seen for ‘09. I hope none of those bonds are insured by MBIA.
Link posted at 11:00
