CDOs boost MBIA's first quarter

MBIA’s first quarter earnings, released on May 6, boded well for its CDO holdings, although several sector analysts issued cautionary statements. The financial guarantor's CDO exposure totaled $67 billion in net par exposure as of March 31. Its CDO portfolio posted a gain of $60 million in the first quarter, a significant up tick from an $82 million loss posted last year. In all, MBIA posted $223 million in earnings, up 47%. That boost came from the mark-to-market unrealized gain primarily from synthetic CDOs.