Ambac Posts Loss on CDO Writedowns, New Business Drop |
Bloomberg - Apr 23, 2008 |
Ambac Financial Group Inc., the bond insurer that lost 93 percent of its stock market value in the past year, posted a wider loss than analysts estimated after $3.1 billion in charges for subprime-mortgage securities.
The first-quarter net loss was $1.66 billion, or $11.69 a share, New York-based Ambac said today in a statement. The company's operating loss of $6.93 a share was more than three times the $1.82 estimated by six analysts surveyed by Bloomberg.
Ambac fell as much as 22 percent in early New York Stock Exchange trading as new business slumped 87 percent after states and municipalities shunned its insurance and the market for mortgage securities dried up. Ambac, the second-largest bond insurer, increased by more than half its estimate of the claims it will need to pay on home-loan debt by $2 billion.
Read Full Article from Bloomberg
- Posted: 2008-04-23 08:15:19
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