Ambac, the bond insurer, is seeking to raise capital to support a split of its operations in efforts to retain its Aaa credit rating. In a plan to separate its municipal bond guarantee business, its traditional core, from its riskier structured finance operations, it wants to raise fresh capital for its munibond operations to free up capital for its structured finance operations. The plan, which could be finalised soon, would be “complex and tough to pull off”, says Lex. But it could prove a blueprint for Ambac and MBIA, the two biggest, to return to their municipal roots while minimising the financial fall-out.

This entry was posted by Gwen Robinson on Tuesday, February 19th, 2008 at 5:51 and is filed under Capital markets. Tagged with Ambac. Edit this entry.