Friday, January 25, 2008

bond insuers take center stage

--once little known insurance companies now are taking center stage because their weakness have domino effect, undercutting the value of the bonds they garantee. --cash infusions from outside investors won't be smooth --not all banks have the same amount at stake. Citi and ML has relative larger exposure to bond insurance wrapping. --all banks are tight in credit, they already stretched their balance sheet.

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