tag:blogger.com,1999:blog-30643134.post4467711084681680961..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Big day for the monolinesAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-30643134.post-60608804656856845472008-08-14T10:05:00.000-05:002008-08-14T10:05:00.000-05:00There is also an element of just general credit. M...There is also an element of just general credit. Most preferred issues, even of relatively strong issuers, are trading at significant discounts. So if FSA is at a 50c discount, at least 20c is just the market for all credit.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-42712966472527996842008-08-13T16:48:00.000-05:002008-08-13T16:48:00.000-05:00Al,dave m. rasied a good question when he asked wh...Al,<BR/><BR/>dave m. rasied a good question when he asked why FSA's bonds were trading 50 cents on the dollar. Here's my thought on why this is the case: Those bonds plummeted after Bill Ackman held his meeting with other hedge fund traders and said that FSA was going the same way as Ambac and MBIA and had purchased FSA's CDS. They have never recovered since then. The only way these bonds will recover, in my opinion, is if Moody's affirms the AAA rating for FSA regardless if the outlook is stable or negative. Your thoughts?Tony Towershttps://www.blogger.com/profile/06557074208330101375noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-82569044737987625422008-08-09T01:32:00.000-05:002008-08-09T01:32:00.000-05:00Al,The market today seems to be giving second thou...Al,<BR/>The market today seems to be giving second thoughts about Ambac's prospects being all that good. Ambac was down almost 6% while the S&P was up more than 2%. I'm now inclined to believe that Ambac will struggle with or without Connie Lee and eventually be bought by another monoline as this industry consolidates.Tony Towershttps://www.blogger.com/profile/06557074208330101375noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-66301489570693919992008-08-08T16:18:00.000-05:002008-08-08T16:18:00.000-05:00Al,Dexia's decision to assume liability on FSA...Al,<BR/><BR/>Dexia's decision to assume liability on FSA's GICs may be more important than the capital infusion it made to FSA. Moody's will be hard pressed to lower the AAA rating after FSA's and Dexia's actions this week as well as the affirmation of its AAA rating by S&P and Fitch yesterday.Tony Towershttps://www.blogger.com/profile/06557074208330101375noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-41815539858159384522008-08-08T12:46:00.000-05:002008-08-08T12:46:00.000-05:00I am still perplexed as to why FSA's bonds are tra...I am still perplexed as to why FSA's bonds are trading 50 cents on the dollar. It seems that with the backing of Dexia, the chances of the bonds being "money good" are quite excellent. Yes/No?Dave M.https://www.blogger.com/profile/16326160553575004144noreply@blogger.com