Ambac has completed its $1.5 billion equity offering and is working to restore market confidence, said John Uhlein, executive vice president at Ambac Financial Group. Uhlein, was among the panelists from the bond insurance industry who spoke at the American Securitization Forum's sunset seminar on financial guarantors yesterday. In what seemed to be a remarkably upbeat discussion, Uhlein noted that many of Ambac's previous stock holders, 20 investors owned approximately 80% of Ambac's stock prior to the offering, invested in the offering and were supportive of the capitalization plan. Cerberus Capital Management has also been publicly identified as an investor in the offering. While Uhlein acknowledged that a prior deal to split the company had been discussed, ultimately Ambac decided that it would remain a single entity, primarily out of fear that a separated structured finance unit might not be able to generate enough capital to sustain a triple-A rating. "If you want to be a triple-A company, you have got to make that decision," Uhlein said. He noted that a 'AA'-rated monoline is much more niche.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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With a high proportion of fixed-rate, interest-only underlying loans, the notes have almost no amortization, and three CRE loans have standalone, investment-grade opinions.
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The fixed-rate loans are divided into three sub-pools that relied on rating methods from the RMBS, CMBS and ABS sectors to assess their risks.
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The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
April 18 -
The portfolio does not have any meaningful originations that have completed a full repayment cycle, making the company's performance data thin.
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Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
April 17