For the life of me, I can't understand why those affected don't grasp that the "two classes" of risks insured by MBI, Ambac, et al can be reinsured separately, without "breaking up" the issuer of the primary coverage.
Two separate "syndicates" (a la Lloyds) could be assembled. One from the Calpers and other Muni-related funds (whose flow of funds derives from Muni borrowings in large measure that are a major source of payrolls). The other from the financial institutions that are exposed to "valuation" adjustments in this era of uncertain or absent pricing.
Under The Radar News - Friday [View article]
For the life of me, I can't understand why those affected don't grasp that the "two classes" of risks insured by MBI, Ambac, et al can be reinsured separately, without "breaking up" the issuer of the primary coverage.
Two separate "syndicates" (a la Lloyds) could be assembled. One from the Calpers and other Muni-related funds (whose flow of funds derives from Muni borrowings in large measure that are a major source of payrolls). The other from the financial institutions that are exposed to "valuation" adjustments in this era of uncertain or absent pricing.