06 June 2008

S&P downgrades Ambac and MBIA

Seeing as how the monoliner insurer's business plan is essentially renting out their triple-A rating, this pretty much puts them out of business.

With the monoliners heading for the rocks, it means that all forms of bonds are going to be more expensive to issue, and more difficult to resell, so I expect the market to slow down a lot, and possibly freeze up.

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