Fitch has Stripped MBIA of it's AAA Rating - The Consequences...

By: Reggie Middleton | Mon, Apr 7, 2008
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Here we go. It is amazing that the investment banks have rallied, particularly considering that most of them rely heavily on MBIA and Ambac as counterparties. Here is nearly all of the MBIA holdings of Morgan Stanley (many billions of dollars worth), recently downgraded: Morgan Stanley_final_040408 (1.38 MB). A comprehensive forensic deep dive, economic analysis and update of Morgan Stanely will be following shortly. Stay tuned...

For anybody who is interested, I am making available info on several other institutions with downgraded MBIA insured inventory. This is no trivial occurrence, and in my opinion it was long overdue (for those of you who don't remember, reference my Super Scary Halloween Tale of 104 Basis Points). Below are the results of my proprietary research on broker/bank direct Ambac and MBIA counterparty exposure. This is the link to Fitch's analysis of the same (requires free registration).

1st Franklin ABS Inventory
BAC ABS Inventory
C ABS Inventory
CFC ABS Inventory (these guys were just downgraded themselves, hat tip to Paul)
CTX ABS Inventory
LEH ABS Inventory
ML ABS Inventory
Wachovia ABS Inventory
WaMu ABS Inventory
Wells Fargo ABS Inventory

 


 

Reggie Middleton

Author: Reggie Middleton

Reggie Middleton
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