MBIA has announced that it will stop guaranteeing ABS for six months and said that it intends to split the structured business from its municipal bond division within a five-year period. According to published reports, Joseph Brown, MBIA's new chief executive, said in a note to shareholders that this move is being made while the company evaluates its options. Meanwhile, Moody's Investors Service today confirmed MBIA's and its affiliates' 'Aaa' insurance financial strength ratings. The rating agency has also confirmed the 'Aa2' rating on surplus notes issued by MBIA Insurance Corp., and the 'Aa3' senior unsecured ratings of its parent company, MBIA Inc. The rating actions reflect Moody's assessment of MBIA's current efforts to strengthen its capital position in terms of its problematic mortgage and mortgage-related CDO exposures. The rating firm also considered the changes the company is implementing to limit the volatility associated with its insured portfolio. MBIA's current outlook is negative.
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Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
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Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24