Sharps SP 1 LLC launched an offer today to exchange 119 different CUSIPs of RMBS and ABS insured by Financial Guaranty Insurance Co. (FGIC) with an aggregate unpaid principal balance of round $9.6 billion.

Sharps is offering to exchange the insured securities for a combined cash and certificates generally representing the right to receive distributions of an amount equal to the principal and interest distributions made on the underlying insured securities without the benefit of the related FGIC insurance policy. Once the offer is completed, it would considerably lessen FGIC's statutory loss reserves for the Insured Securities.

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