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.

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