MBIA and Ambac lost their triple-A rating which brings the credit crisis back into the picture after the Bear Stearns blow-up. We have found it interesting that a dollar floor was formed with the Fed intervention and it seems like there was a turn in the market perception of the credit crisis. Now those issues are going to come back into the forefront.
What are the values for all of the securities that had insurance from MBIA and Ambac. We know that they were less before, but it is possible that many of the securities were marked at book value given the rating. Now we know that they are not worth the same as other triple-A rated securities.
You cannot hide from these problems.
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