Bank Debt Risk Falls as MBIA, Ambac Stave Off Ratings Cuts |
| Bloomberg - Feb 26, 2008 |
The risk of banks defaulting declined the most in two weeks after MBIA Inc. and Ambac Financial Group, the two biggest bond insurers, averted rating downgrades that threatened their businesses.
Credit-default swaps on the benchmark Markit iTraxx Financial index of 25 European banks and financial institutions dropped as much as 11 basis points to 98.5, the biggest decline since Feb. 11, JPMorgan Chase & Co. prices show. The CDX North America Investment-Grade Index fell 1.5 basis points to 140.5 at 6:49 a.m. in New York, according to Phoenix Partners Group.
Standard & Poor's said yesterday it is no longer reviewing MBIA and affirmed Ambac's top AAA grade pending attempts to boost capital. Armonk, New York-based MBIA suspended its asset- backed securities guarantee business for six months, said it would separate that unit from municipal insurance and eliminated its quarterly dividend, according to a statement yesterday.
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- Posted: 2008-02-26 09:44:16
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