Maui Investor

Investors Are Overlooking MBIA's Value - Barron's

When I saw MBI and ABK bounce a little into Friday's close, I wondered what the reason was. It appears someone may have leaked that this article was coming out over the weekend.

While I do think the selling appears to be overdone, I think that bond insurance in 2008 is the same as portfolio insurance was in 1987. I also think that the way the stock market is pricing ABK and MBI is an indication of its faith in the value of the bond insurance they provide.