Big day for monolines after MBIA and Ambac results

MBIA (MBI +11.3%) led the way, though management remains circumspect about when its National subsidiary might attain the credit rating necessary to begin writing insurance again - a major catalyst to the bulls on the stock.

CEO Jay Brown on the earnings call (transcript): "All I can say is that we continue to have a positive and active dialogue with the agencies and that we're hopeful that they will rate National in the AA range in the near term ... The decision and the timing remains solely in their hands, and I am not in a position to offer any additional insight to offer at this time."

Others: Ambac (AMBC +4.2%), Assured Guaranty (AGO +5.6%).

Comments (7)
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    When they can write new business expect a double from here.
    4 Mar 2014, 05:15 PM Reply Like
  • RipCrackle
    , contributor
    Comments (122) | Send Message
    When do you expect that will happen?
    4 Mar 2014, 07:09 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    Between 2017 and 2019.
    4 Mar 2014, 10:18 PM Reply Like
  • oregonhillnumina
    , contributor
    Comments (18) | Send Message
    just curious. You think its going to take 2017 to get clarification from the ratings agency? or to get clarification on Detroit and Puerto Rico? It sounds to me from the CEO cc that he's expecting it sooner.
    5 Mar 2014, 06:29 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    Sorry about that...I meant Detroit and Puerto Rico and the other municipalities that are on thin ice (perhaps some may be located in Illinois and New Jersey).


    I think MBIA will be good to go by early next year for an AA.
    5 Mar 2014, 08:06 PM Reply Like
  • skibimamex
    , contributor
    Comments (592) | Send Message
    when there is improved visibility on Detroit (status of GO obligations whether it is considered unsecured) and incremental clarity on Puerto Rico. No hurry for rating agencies to act.
    4 Mar 2014, 08:26 PM Reply Like
  • NY Finance Guy
    , contributor
    Comments (20) | Send Message
    Too much competition for slower muni volume going forward. AGO MBI and BAM to cause premiums to fall amid slowing volume.. 1990s all over again….ROE on muni only business is single digits. Thats why all firms went into structured finance…Deju vu all over again...
    3 Apr 2014, 12:32 PM Reply Like
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