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Court Cases Could Help MBIA’s Securitizations March 05, 2010

-- Daniel O’Leary Court case outcomes in the U.S. could improve the credit quality of all global monoline-wrapped MBIA Insurance securitizations. According to Michael Cox, London-based partner at financial boutique Chalkhill Partners, the outcome of the cases could improve MBIA’s financial position, which would also improve its ability to act as the insurer on its wrapped deals.
MBIA has about $122.6 billion of insured securitizations in the U.S., European exposure accounts for $29.7 billion and the rest of the world totals $13.87 billion. The majority of the wraps have been done on collateralized debt obligations. The firm has instigated a number of lawsuits against international investment banks and local U.S. loan originators that allegedly issued the monoline with toxic loans or mortgage-backed securities to wrap. In Wednesday’s annual general meeting, Jay Brown, ceo at MBIA, said ...

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