NYSDFS Stopping MBIA (MBI) Notes Payment Nothing New, BofA (BAC) Still in Focus
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Price: $4.82 --0%
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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MBIA, Inc. (NYSE: MBI) is trading lower following disclosure that the New York State Department of Financial Services (NYSDFS) has denied MBIA Corp.’s request to make the January 15, 2013 scheduled interest payment on the Surplus Notes.
MKM Partners' Harry Fong is out with comments on the news today. Fong notes that the semi-annual payment would have been about $67 million, representing about 17 percent of September 0, 2012, liquidity. He notes that no impact is expected on MBIA's common shareholders or parent company debt holders. Also, the non-payment does not constitute a default of the surplus notes.
Investors sholdn't think that the move indicates that MBIA's liquidity has fallen to "worrisome" levels and recent actions to shift restricted subsidiary on both holding company bond indentures as well as recent management commentary should reinforce this.
If MBIA is forces to make substantial structured CMBS payments before collecting its pullback from Bank of America (NYSE: BAC), then an issue might arise.
Fong believes the DFS was just doing its job in looking out for the best interest of policyholders.
MBIA is 0.9 percent.
For an analyst ratings summary and ratings history on MBIA Inc. click here. For more ratings news on MBIA Inc. click here.
Shares of MBIA Inc. closed at $8.11 yesterday.
MKM Partners' Harry Fong is out with comments on the news today. Fong notes that the semi-annual payment would have been about $67 million, representing about 17 percent of September 0, 2012, liquidity. He notes that no impact is expected on MBIA's common shareholders or parent company debt holders. Also, the non-payment does not constitute a default of the surplus notes.
Investors sholdn't think that the move indicates that MBIA's liquidity has fallen to "worrisome" levels and recent actions to shift restricted subsidiary on both holding company bond indentures as well as recent management commentary should reinforce this.
If MBIA is forces to make substantial structured CMBS payments before collecting its pullback from Bank of America (NYSE: BAC), then an issue might arise.
Fong believes the DFS was just doing its job in looking out for the best interest of policyholders.
MBIA is 0.9 percent.
For an analyst ratings summary and ratings history on MBIA Inc. click here. For more ratings news on MBIA Inc. click here.
Shares of MBIA Inc. closed at $8.11 yesterday.
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