Tuesday, July 10, 2007

MBIA, Ambac shares fall; bond raters unconcerned

(Reuters) - MBIA's shares fell 1.8 percent, and Ambac's were down 4.5 percent after Standard & Poor's and Moody's Investors Service started cutting ratings on more than $17 billion of bonds linked to subprime mortgages, citing higher-than-expected delinquencies in the underlying home loans.




S&P also said it is overhauling the way it rates collateralized debt obligations, or bonds that are backed by portfolios of other debt. Bond insurers guarantee a number of these securities against default.


Read more at Reuters.com Hot Stocks News

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