Embattled Bond Insurers Ambac (ABK) and MBIA (MBI) Move Higher
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Shares of Ambac Financial (NYSE: ABK), which saw its AAA rating cut by Fitch on Friday, is 30% higher today even after the bond insurer reported an amazingly large $31.85 loss per share.
Buoying the shares is news from the company that it is evaluating strategic alternatives with a number of potential parties.
Amac said it views the current perceptions of Ambac's business by both the market and ratings agencies as underestimating Ambac's strengths and future potential.
Shares of rival MBIA (NYSE: MBI) are up 35%, following a positive piece in Barron's.
Both stocks are benefiting from aggressive US fed and Bush administration stimulus action. This morning, the US fed cut rates 75bp in an emergency move.
Buoying the shares is news from the company that it is evaluating strategic alternatives with a number of potential parties.
Amac said it views the current perceptions of Ambac's business by both the market and ratings agencies as underestimating Ambac's strengths and future potential.
Shares of rival MBIA (NYSE: MBI) are up 35%, following a positive piece in Barron's.
Both stocks are benefiting from aggressive US fed and Bush administration stimulus action. This morning, the US fed cut rates 75bp in an emergency move.
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