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’[Abacus] The Goldman defence documents
A big hat tip to the FT’s Francesco Guerrera here.
Presenting Goldman Sachs’ detailed defence of Abacus 2007-AC1 CDO — Part I and Part II
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There’s so much here worthy of discussion,
The many lives of ACA Capital
This just out, and bang on schedule:
ACA Capital Enters into Fifth Forbearance Agreement Extending Forbearance until July 15, 2008
NEW YORK–(BUSINESS WIRE)–June 20, 2008–ACA Capital Holdings, Inc.
The end of MBIA and Ambac?
Moody’s downgrading of MBIA and Ambac should be a cathartic event.
It means that the companies – in current form – will not write business ever again.
MBIA has been downgraded all the way to A2. It.
The sign of the four
The fourth forbearance agreement, that is. Just out from ACA:
NEW YORK–(BUSINESS WIRE)–April 24, 2008–ACA Capital Holdings, Inc. (OTC BB: ACAH) today announced that it has entered into a fourth forbearance agreement with its Structured Credit and other similarly situated counterparties.
The case of the missing bond insurer
“But Holmes!” I blustered, pacing from one end of the unnecessarily gloomy drawing room to another. “A company can’t just disappear!”
“Of course it can, my dear Watson. And this ACA Capital – bond insurer,
ACA wins respite from creditors
ACA Capital, the parent of troubled bond insurer ACA Financial Guaranty, has secured another extension from creditors in order to resolve its financial woes. The bond insurer risks collapse if it cannot find at least $1.7bn to pay claims arising from credit default swap contracts with a range of investment banks.
Blackstone and the bond insurers
Since when has Blackstone been advising ACA?
Well they are now. The troubled monoline bond insurer on Tuesday night said it had entered into a third forbearance agreement with its counterparties to give it more time to raise capital and restructure before it has to post collateral on its CDS positions.
Monoline ACA sells CDO business; averts disaster?
Monoline ACA isn’t the largest in the world, but its failure would have been extremely painful for banks.
Since it only started out with an A rating, ACA had collateral posting requirements written into its numerous CDS positions.
Monoline update: hedge funds the only people who know what they’re doing
Perhaps a little perspective is needed, bond insurer-wise.
Markets don’t seem to know how to react. It’s pretty clear that as far as trading monolines goes, equity investors are in hock to whatever the latest headline is.
Gunners need not fear the Ambac effect
The slow drip of nasty news continues as the problems and subsequent downgrades of the US monoline bond insurers filters through the financial system.
Monday began with a month’s reprieve for the now CCC-rated ACA,
ACA secures stay of execution
ACA Capital, the parent of cash-strapped bond insurer ACA Financial Guaranty, said its trading partners had agreed to give it another month to work out its financial difficulties. In a statement late Sunday night,
ACA wins more time; as Dexia tries to reassure on Ambac
Surprise! ACA has survived the weekend.
The bond insurer, which was last month the first of its ilk to have its top notch credit rating slashed, said late on Sunday that it had convinced its trading partners to give it more time to raise capital and to stabilise its financial position.
For troubled US bond insurers, ‘this is not a static situation’
One way to avoid the vast and growing problems of the world’s leading bond insurers is to avoid them altogether, as US municipal borrowers are demonstrating, reports the FT on Monday.Municipal borrowers in the US are increasingly issuing bonds without seeking guarantees from beleaguered insurers MBIA and Ambac,
Monoline dominoes – who falls when
In a credit note sent out to clients on Friday, RBS started to outline what it thought was on the horizon for the monolines:
From a rating perspective, in the absence of a bail-out, we see the agencies as more likely to downgrade than not,
Will ACA survive the day? And what about that $61bn exposure if it doesn’t?
Bond insurer ACA had its A-grade credit rating slashed to CCC in December. But it was granted a stay of execution until today.
If it can’t raise $1.7bn, it will be insolvent and the first monoline to fall.
Bond insurers spark new credit concerns
Fears that the credit crunch might be entering a grim new phase grew Thursday as investors lost confidence in the insurers that guarantee payments on billions of dollars in bonds. Shares in Ambac Financial and MBIA,
A new type of writedown: monolines hit Merrill’s numbers
Buried amid a rather dismal set of numbers from Merrill Lynch on Thursday, proof positive that the ailing monoline bond insurers have the potential to inflict further pain on the Wall Street banks.
The headline writedown taken by the bank,
Merrill to take “giant” writedown; any buyers?
Merrill Lynch, due to report its end of year results next Thursday, is going to suffer more than analysts have been predicting, according to a report in Friday’s New York Times:
Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments,
Municipal America on credit watch
Journalists – much like small children – are impressed by big numbers. So forgive us if we’ve got the perspective on the below a little skewed. This strikes us as a bit hysterical, however.
On Friday,