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  • Moody's Affirms Ambac, MBIA Ratings - Losing Any Last Shred of Credibilty  [View article]
    ABK has a strong long term pipeline from muni's. Unless there is a 1929 style depression (low probability), ABK should be able to weather this storm.

    The $29B reinsurance is more Balance Sheet accounting than anything else. From a cash flow perspective, ABK shouldn't need to raise capital in 2008.

    The Berkshire entry into the arena bodes well for ABK as this reinforces the basic business model as being sound and transparent (true to Berkshire primary investment criteria) and also as a prelude to Berkshire buying a chunk of competitors; ABK included as a primary target at the right price.

    Disclosure: This is the opinion of a CrossProfit analyst and is the consensus at CrossProfit.com. No current conflicts of interest.
    Dec 31 12:48 pm |Rating: 0 0 |Link to Comment
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