Morgan Stanley's global director of securitized product research Chip Schorin endorsed bond insurer MBIA Inc., saying that the odds of MBIA having its triple-A ratings cut due to poor CDO performance are unlikely given the senior positions of its exposure in the CDO market.

Speaking to investors at its annual ABS/CDO Research Roadshow last week, Schorin said the fact that approximately 80% of its CDO exposure is rated triple-A, combined with the fact that Morgan Stanley's estimate of MBIA's losses on its riskiest positions is manageable, leads Schorin to believe that MBIA is not at risk of an imminent downgrade.

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