MBIA Inc. (MBI) Meets Moody's Rating Requirements After Portfolio Rebalancing
More News related to MBI
- Unusual 11 Mid-Day Movers 11/10: UPG, CSII, SGK, MEDQ Higher; RHIE, OPXT, PRKR, MBI Lower
- Morning Movers 11/10: UPG, CYD, PCLN, FLL, BZH Higher; RHIE, OPXT, PRKR, PIKE, MBI, SDTH Lower
- After-Hours Movers 11/09: SGK, PCLN, SQNM Higher; MBI, SDTH, UTK, TOPS, CPST, BTN, FLR Lower
- MBIA Inc. (MBI) reports Q3 loss of $3.50
- MBIA Inc. Provides Financial Update for First Nine Months of 2009
More News related to Corporate News
- Kinross (KGC) Enters Agreement for $125M Letter of Credit Facility
- Endo Pharma (ENDP) Announces Settlement with LecTec Over Outstanding Patent Litigation
- Trubion Pharma (TRBN) Announces Two Presentations of TRU-016 Product at 2009 ASH Meeting
- S&P Revises Outlook on Sirius XM (SIRI) from Stable to Positive
- Toll (TOL) Execs Say Housing Bottomed in March '09, Saw Stronger Demand in Washington, NY, Connecticut
On June 20, 2008, MBIA Inc. (NYSE: MBI) announced that as a result of Moody's downgrade of MBIA Insurance Corporation's insurance financial strength rating from Aaa to A2 it expected that it would be required to post additional eligible collateral and fund potential termination payments under its outstanding Guaranteed Investment Contracts (GICs).
The Company announced today that following a portfolio rebalancing within its Asset/Liability Management (ALM) business, which included sales of approximately $4 billion of investment assets during the second quarter, it has sufficient eligible collateral and cash to satisfy these additional requirements. As a result of these activities, the Company's entire remaining GIC portfolio will be fully collateralized, to the extent all GIC holders exercise their right to collateralization. While MBIA continues to buy and sell municipal securities in the ordinary course of managing its insurance investment portfolio, the repositioning activity in the ALM portfolio did not include the sale of municipal securities.
MBIA's ALM portfolio liabilities declined from $25.1 billion at March 31, 2008 to $24.1 billion at June 27, 2008 through normal amortization of the portfolio.
As a result of the sale of approximately $4 billion in investment assets from the ALM portfolio during the second quarter, MBIA estimates that it will record pre-tax net realized losses on its second quarter income statement of approximately $300 million. The sale of assets is not expected to have a material impact on shareholders' equity since the amount of unrealized losses on its balance sheet that the Company previously recorded with respect to the assets that were sold did not differ substantially from the actual prices at which the assets were sold.
In addition to having ample liquidity in its ALM business, MBIA also continues to hold approximately $1.4 billion in cash at the holding company level.[SM]
Related Categories
Corporate NewsStocks Mentioned
+0.23Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
