Counterparty Risk: The Mortgage Insurers
From the Ambac 10-Q : While management believes that Ambac will have sufficient liquidity to satisfy its needs through the second quarter of 2011, no guarantee can be given that it will be able to pay all of its operating expenses and debt service obligations thereafter, including maturing principal in the amount of $143,000 in August 2011. In addition, it is possible its liquidity may run out prior to the second quarter of 2011. Ambac is developing strategies to address its liquidity needs; such strategies may include a negotiated restructuring of its debt through a prepackaged bankruptcy proceeding . No assurances can be given that Ambac will be successful in executing any or all of its strategies. If Ambac is unable to execute these strategies, it will consider seeking bankruptcy protection…(read more)
Related posts:
- 5/4/10–Ambac Update, CDI Bill, European Counterparty Risk
- S&P Upgrades Ambac’s Counterparty Rating to CC
- Consistent Counterparty Risk Check-Ups are Key to Sustained Mortgage Banker Profitability
- Mortgage Insurers Pressure Lenders to Repurchase Bad Loans
- Reverse Mortgage Exit Motivations; Assessing Counterparty Risk; TILA & HOEPA Fee Based Triggers; HUD Training
