Wall Street Breakfast: Must-Know News [View article]
Commonsense1, this issue of derivatives is now been addressed more directly by Goldman Sacs, they are going to put in auction SIV's structured investments derivatives currently value at 7 billion, so the market will decide for the first time how much are these papers worth and allow a working price for these and other kind of derivatives in the future...so no more second guesses... the market will tell how much they are worth just like in a common stock.
Wall Street Breakfast: Must-Know News [View article]
they keep and save the cash as they deleverage, the books will appreciate by default, it's just a matter of time before those books are sound enough again to reinstate their triple A, not a brainer really.
Wall Street Breakfast: Must-Know News [View article]
In respect to Ambac and MBIA, they need to keep and save their cash they already have and any cash coming into their coffers, deleverage from annoying debts, obligations and risks, stop paying dividends to increase their book value and once their book value is adequate and sound reinstate their triple A ratings again to start writing down new public bonds insurance only in low risk areas of the market. This strategy in itself is the best advertisement to recruit new business because the new clients will precieve that " if these folks were able to survive the credit crisis then they can survive anything".
AMBAC and MBIA are already doing this strategy, so now its a matter of time for their book value to appreciate quarter by quarter to reinstate their triple A again, you dont have to be a rocket science to figure this out.
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
AMBAC and MBIA are already doing this strategy, so now its a matter of time for their book value to appreciate quarter by quarter to reinstate their triple A again, you dont have to be a rocket science to figure this out.