Martin Z's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/233398/comments http://seekingalpha.com/article/87219-is-the-structural-bear-market-nearing-its-end?source=feed#comment-216129 216129 Sun, 27 Jul 2008 23:14:04 -0400 http://seekingalpha.com/article/87235-evaluating-ambac-intrinsic-value-withstanding-market-volatility?source=feed#comment-216119 216119 Cash flow positive means nothing here. Rating agency will downgrade the ABK to junk, that will lead to more collateral posting on the CDS portfolio, ABK will have trouble posting and regulator will step in, the counterparties(major banks) will end up owning ABK jointly in a massive restructuring. End result: ABK equity holder wipe out. Counterparties write down all of the CDS(if they haven't done so already)
]]> Sun, 27 Jul 2008 23:01:35 -0400 Cash flow positive means nothing here. Rating agency will downgrade the ABK to junk, that will lead to more collateral posting on the CDS portfolio, ABK will have trouble posting and regulator will step in, the counterparties(major banks) will end up owning ABK jointly in a massive restructuring. End result: ABK equity holder wipe out. Counterparties write down all of the CDS(if they haven't done so already)
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