MBI - MBIA Inc.

[SFValue]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

from the filling:

 

"Issuer's issuance of a warrant to Blue Ridge Investments, L.L.C. on May 6, 2013 under the settlement agreement with Bank of America Corporation triggered certain anti-dilution adjustments under terms of WP X's (1) Warrant, dated as of January 30, 2008, originally exercisable for 8,698,920 shares of Common Stock at an original exercise price of $40.00 per share (the "Warrant"), (2) B-Warrant, dated as of January 30, 2008, originally exercisable for 7,430,112 shares of Common Stock at an original exercise price of $40.00 per share (the "B-Warrant"), (3) B2-Warrant, dated as of February 6, 2008, originally exercisable for 3,870,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 1"), and (4) B2-Warrant, dated as of February 6, 2008, originally exercisable for 130,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 2" and, together with the Warrant, the B-Warrant and the B-2 Warrant 1, the "Original Warrants").

7. (Continuation from footnote 6) Each Original Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, certain repurchases, business combinations and similar actions. These anti-dilution adjustments are being voluntarily reported; no transaction has taken place with respect to the Original Warrants. As a result of the anti-dilution adjustments, (a) the Warrant is now exercisable for 11,819,185 shares at an exercise price of $29.44 per share, (b) the B-Warrant is now exercisable for 10,095,261 shares at an exercise price of $29.44 per share, © the B2-Warrant 1 is now exercisable for 3,874,784 shares at an exercise price of $16.18 per share, and (d) the B2-Warrant 2 is now exercisable for 130,161 shares at an exercise price of $16.18 per share. Each of the Original Warrants is currently exercisable."

 

[muscleman]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

from the filling:

 

"Issuer's issuance of a warrant to Blue Ridge Investments, L.L.C. on May 6, 2013 under the settlement agreement with Bank of America Corporation triggered certain anti-dilution adjustments under terms of WP X's (1) Warrant, dated as of January 30, 2008, originally exercisable for 8,698,920 shares of Common Stock at an original exercise price of $40.00 per share (the "Warrant"), (2) B-Warrant, dated as of January 30, 2008, originally exercisable for 7,430,112 shares of Common Stock at an original exercise price of $40.00 per share (the "B-Warrant"), (3) B2-Warrant, dated as of February 6, 2008, originally exercisable for 3,870,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 1"), and (4) B2-Warrant, dated as of February 6, 2008, originally exercisable for 130,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 2" and, together with the Warrant, the B-Warrant and the B-2 Warrant 1, the "Original Warrants").

7. (Continuation from footnote 6) Each Original Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, certain repurchases, business combinations and similar actions. These anti-dilution adjustments are being voluntarily reported; no transaction has taken place with respect to the Original Warrants. As a result of the anti-dilution adjustments, (a) the Warrant is now exercisable for 11,819,185 shares at an exercise price of $29.44 per share, (b) the B-Warrant is now exercisable for 10,095,261 shares at an exercise price of $29.44 per share, © the B2-Warrant 1 is now exercisable for 3,874,784 shares at an exercise price of $16.18 per share, and (d) the B2-Warrant 2 is now exercisable for 130,161 shares at an exercise price of $16.18 per share. Each of the Original Warrants is currently exercisable."

 

True, but this doesn't explain why they sold some shares at a big loss, does it?

[SFValue]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

from the filling:

 

"Issuer's issuance of a warrant to Blue Ridge Investments, L.L.C. on May 6, 2013 under the settlement agreement with Bank of America Corporation triggered certain anti-dilution adjustments under terms of WP X's (1) Warrant, dated as of January 30, 2008, originally exercisable for 8,698,920 shares of Common Stock at an original exercise price of $40.00 per share (the "Warrant"), (2) B-Warrant, dated as of January 30, 2008, originally exercisable for 7,430,112 shares of Common Stock at an original exercise price of $40.00 per share (the "B-Warrant"), (3) B2-Warrant, dated as of February 6, 2008, originally exercisable for 3,870,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 1"), and (4) B2-Warrant, dated as of February 6, 2008, originally exercisable for 130,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 2" and, together with the Warrant, the B-Warrant and the B-2 Warrant 1, the "Original Warrants").

7. (Continuation from footnote 6) Each Original Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, certain repurchases, business combinations and similar actions. These anti-dilution adjustments are being voluntarily reported; no transaction has taken place with respect to the Original Warrants. As a result of the anti-dilution adjustments, (a) the Warrant is now exercisable for 11,819,185 shares at an exercise price of $29.44 per share, (b) the B-Warrant is now exercisable for 10,095,261 shares at an exercise price of $29.44 per share, © the B2-Warrant 1 is now exercisable for 3,874,784 shares at an exercise price of $16.18 per share, and (d) the B2-Warrant 2 is now exercisable for 130,161 shares at an exercise price of $16.18 per share. Each of the Original Warrants is currently exercisable."

 

True, but this doesn't explain why they sold some shares at a big loss, does it?

 

sorry, I did not post this part:

 

"On August 5, 2013, the Issuer issued a warrant (the "New Warrant") to WP X pursuant to the Investment and Settlement Agreement and Waiver and Release, dated August 5, 2013 (the "Agreement"), between WP X, the Issuer and, solely for purposes of Section 1.3 of the Agreement, WP X Partners. The total purchase price for the New Warrant of $8,386,730.63 was reduced by a cash settlement payment of $1,124,212.81 owed by the Issuer to WP X pursuant to the Agreement. The net consideration of $7,262,517.82 was paid by surrendering to the Issuer 536,375 shares of Issuer's Common Stock owned by certain Warburg Pincus Reporting Persons based on a per share valuation of $13.54. The New Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, business combinations and similar actions. "

 

[muscleman]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

from the filling:

 

"Issuer's issuance of a warrant to Blue Ridge Investments, L.L.C. on May 6, 2013 under the settlement agreement with Bank of America Corporation triggered certain anti-dilution adjustments under terms of WP X's (1) Warrant, dated as of January 30, 2008, originally exercisable for 8,698,920 shares of Common Stock at an original exercise price of $40.00 per share (the "Warrant"), (2) B-Warrant, dated as of January 30, 2008, originally exercisable for 7,430,112 shares of Common Stock at an original exercise price of $40.00 per share (the "B-Warrant"), (3) B2-Warrant, dated as of February 6, 2008, originally exercisable for 3,870,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 1"), and (4) B2-Warrant, dated as of February 6, 2008, originally exercisable for 130,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 2" and, together with the Warrant, the B-Warrant and the B-2 Warrant 1, the "Original Warrants").

7. (Continuation from footnote 6) Each Original Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, certain repurchases, business combinations and similar actions. These anti-dilution adjustments are being voluntarily reported; no transaction has taken place with respect to the Original Warrants. As a result of the anti-dilution adjustments, (a) the Warrant is now exercisable for 11,819,185 shares at an exercise price of $29.44 per share, (b) the B-Warrant is now exercisable for 10,095,261 shares at an exercise price of $29.44 per share, © the B2-Warrant 1 is now exercisable for 3,874,784 shares at an exercise price of $16.18 per share, and (d) the B2-Warrant 2 is now exercisable for 130,161 shares at an exercise price of $16.18 per share. Each of the Original Warrants is currently exercisable."

 

True, but this doesn't explain why they sold some shares at a big loss, does it?

 

sorry, I did not post this part:

 

"On August 5, 2013, the Issuer issued a warrant (the "New Warrant") to WP X pursuant to the Investment and Settlement Agreement and Waiver and Release, dated August 5, 2013 (the "Agreement"), between WP X, the Issuer and, solely for purposes of Section 1.3 of the Agreement, WP X Partners. The total purchase price for the New Warrant of $8,386,730.63 was reduced by a cash settlement payment of $1,124,212.81 owed by the Issuer to WP X pursuant to the Agreement. The net consideration of $7,262,517.82 was paid by surrendering to the Issuer 536,375 shares of Issuer's Common Stock owned by certain Warburg Pincus Reporting Persons based on a per share valuation of $13.54. The New Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, business combinations and similar actions. "

 

I see. So they essentially sold the shares to acquire the warrants. I think this is a bullish assumption that adds to their long side leverage.

Thank you!

[SFValue]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

 

 

 

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

from the filling:

 

"Issuer's issuance of a warrant to Blue Ridge Investments, L.L.C. on May 6, 2013 under the settlement agreement with Bank of America Corporation triggered certain anti-dilution adjustments under terms of WP X's (1) Warrant, dated as of January 30, 2008, originally exercisable for 8,698,920 shares of Common Stock at an original exercise price of $40.00 per share (the "Warrant"), (2) B-Warrant, dated as of January 30, 2008, originally exercisable for 7,430,112 shares of Common Stock at an original exercise price of $40.00 per share (the "B-Warrant"), (3) B2-Warrant, dated as of February 6, 2008, originally exercisable for 3,870,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 1"), and (4) B2-Warrant, dated as of February 6, 2008, originally exercisable for 130,000 shares of Common Stock at an original exercise price of $16.20 per share ("B2-Warrant 2" and, together with the Warrant, the B-Warrant and the B-2 Warrant 1, the "Original Warrants").

7. (Continuation from footnote 6) Each Original Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, certain repurchases, business combinations and similar actions. These anti-dilution adjustments are being voluntarily reported; no transaction has taken place with respect to the Original Warrants. As a result of the anti-dilution adjustments, (a) the Warrant is now exercisable for 11,819,185 shares at an exercise price of $29.44 per share, (b) the B-Warrant is now exercisable for 10,095,261 shares at an exercise price of $29.44 per share, © the B2-Warrant 1 is now exercisable for 3,874,784 shares at an exercise price of $16.18 per share, and (d) the B2-Warrant 2 is now exercisable for 130,161 shares at an exercise price of $16.18 per share. Each of the Original Warrants is currently exercisable."

 

True, but this doesn't explain why they sold some shares at a big loss, does it?

 

sorry, I did not post this part:

 

"On August 5, 2013, the Issuer issued a warrant (the "New Warrant") to WP X pursuant to the Investment and Settlement Agreement and Waiver and Release, dated August 5, 2013 (the "Agreement"), between WP X, the Issuer and, solely for purposes of Section 1.3 of the Agreement, WP X Partners. The total purchase price for the New Warrant of $8,386,730.63 was reduced by a cash settlement payment of $1,124,212.81 owed by the Issuer to WP X pursuant to the Agreement. The net consideration of $7,262,517.82 was paid by surrendering to the Issuer 536,375 shares of Issuer's Common Stock owned by certain Warburg Pincus Reporting Persons based on a per share valuation of $13.54. The New Warrant is subject to adjustments for certain issuances of common stock, stock splits, stock subdivisions, stock reclassifications, stock combinations, other distributions, business combinations and similar actions. "

 

I see. So they essentially sold the shares to acquire the warrants. I think this is a bullish assumption that adds to their long side leverage.

Thank you!

 

 

exercise prices from 16.18 up to 29.xx

[johnpane]

WP surrendered $1.1M cash and $7.3M in shares to acquire 5-year warrant to buy 1.9M shares with a strike of $9.59. I estimate (back of envelope) the warrant is worth $6.80 per share, for an aggregate value of $13M. WP's total exposure to MBI (shares + warrants) increases by 1.3M shares.

 

I wouldn't necessarily call this a bullish sign. If these calculations are right, it is dilutive to shareholders and a good deal for WP (estimated positive value of $4.7M).

 

It does free about $8.4M cash for MBI (assuming they were able to sell the shares on the open market at $13.54).

 

 

[muscleman]

WP surrendered $1.1M cash and $7.3M in shares to acquire 5-year warrant to buy 1.9M shares with a strike of $9.59. I estimate (back of envelope) the warrant is worth $6.80 per share, for an aggregate value of $13M. WP's total exposure to MBI (shares + warrants) increases by 1.3M shares.

 

I wouldn't necessarily call this a bullish sign. If these calculations are right, it is dilutive to shareholders and a good deal for WP (estimated positive value of $4.7M).

 

It does free about $8.4M cash for MBI (assuming they were able to sell the shares on the open market at $13.54).

 

Yes. I did say this indicates a bullish view from WP side. I am not saying this is good for all shareholders, though the total share count is not affected by much.

[muscleman]

Does anyone know about this NOL? I never noticed this before.

 

"That NOL is approximately $2.8 billion at midyear 2013. It's more than double the amount that we reported in the 2012 10-K, because certain commutations achieved in the first six months of 2013 were policies whose losses had previously not been recognized – or not been recognized, not been deducted for tax purposes."

 

I am a bit confused about this because I do not see this item from the 10-Q balance sheet. Shouldn't this be an item on the asset portion of the balance sheet? If not, then this seems to be a pretty big hidden asset.

http://www.morningstar.com/earnings/55276030-mbia-inc-q2-2013.aspx?pindex=7

 

[ERICOPOLY]

http://investor.mbia.com/file.aspx?IID=103405&FID=18810094

 

No material breaking news.

The only thing that surprises me is why Warburg Pincus started selling now. I believe their cost is like $20 a share.

 

 

http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9442545-1264-16713&type=sect&TabIndex=2&companyid=7168&ppu=%252fdefault.aspx%253fsym%253dMBI

 

I believe I had a better experience than them  :D

 

eric are you out of MBI, if i may ask...

 

In part.  I did sell the majority of it around $14.70 (well, at least in the Roth IRA accounts).  Not that I know much about what the right thing to do from here is though. 

 

I really can't tell you that much about the company.  Eighteen months ago I held the opinion that the CEO would stall a settlement because he wouldn't be reasonable (the tenor of his communications tipped me off) -- then it turns out (or so the rumor goes) that the board had to negotiate for the settlement with the CEO out of the room.  I only bought back into the stock because there was that eerie silence that suggested both parties might finally be settling, and that's how it turned out.  I wasn't the first to notice it, I just acted when another board member pointed it out.  I bought MBI back within 5 days of the settlement announcement! 

 

But no, I don't really think this qualifies as "value investing" where it's described to be something where you don't dart in an out of positions and you are meant to hold them for 3 or 5 years.  More like speculation.  But that's okay, I have no shame.

[johnpane]

WP surrendered $1.1M cash and $7.3M in shares to acquire 5-year warrant to buy 1.9M shares with a strike of $9.59. I estimate (back of envelope) the warrant is worth $6.80 per share, for an aggregate value of $13M. WP's total exposure to MBI (shares + warrants) increases by 1.3M shares.

 

I wouldn't necessarily call this a bullish sign. If these calculations are right, it is dilutive to shareholders and a good deal for WP (estimated positive value of $4.7M).

 

It does free about $8.4M cash for MBI (assuming they were able to sell the shares on the open market at $13.54).

 

Details of the agreement under which WP obtained this warrant are here: http://www.sec.gov/Archives/edgar/data/814585/000089882213000338/ex-9.htm

 

(And as of the date of the agreement, they valued the warrant at $6.98 per underlying share.)

 

WP was a net recipient of about $5M in value here, so again, I would not interpret this as a bullish signal from them.

[yitech]

Does anyone know about this NOL? I never noticed this before.

 

"That NOL is approximately $2.8 billion at midyear 2013. It's more than double the amount that we reported in the 2012 10-K, because certain commutations achieved in the first six months of 2013 were policies whose losses had previously not been recognized – or not been recognized, not been deducted for tax purposes."

 

I am a bit confused about this because I do not see this item from the 10-Q balance sheet. Shouldn't this be an item on the asset portion of the balance sheet? If not, then this seems to be a pretty big hidden asset.

http://www.morningstar.com/earnings/55276030-mbia-inc-q2-2013.aspx?pindex=7

 

Muscleman,

 

Look at deferred income taxes.. It's not a hidden asset. If you read last year's 10K, it is netted against DTL with certain valuation allowance assumptions.

[muscleman]

Does anyone know about this NOL? I never noticed this before.

 

"That NOL is approximately $2.8 billion at midyear 2013. It's more than double the amount that we reported in the 2012 10-K, because certain commutations achieved in the first six months of 2013 were policies whose losses had previously not been recognized – or not been recognized, not been deducted for tax purposes."

 

I am a bit confused about this because I do not see this item from the 10-Q balance sheet. Shouldn't this be an item on the asset portion of the balance sheet? If not, then this seems to be a pretty big hidden asset.

http://www.morningstar.com/earnings/55276030-mbia-inc-q2-2013.aspx?pindex=7

 

Muscleman,

 

Look at deferred income taxes.. It's not a hidden asset. If you read last year's 10K, it is netted against DTL with certain valuation allowance assumptions.

 

Oh! Got it. Thank you!

[valueorama]

Here is an article on MBIA trade by GSO Capital partners.

 

They put in a trade around Feb 2011.

 

Is Darren Richman = valuecfa?

 

http://online.wsj.com/article/SB10001424127887323838204579000672885458550.html

 

 

 

 

 

[yitech]

From the WSJ article: "Investing in MBIA was like having a pet tiger," says Mr. Richman. "You love it, and it's fun to take out and show to friends, but every six months it turns and mauls you."

[rpadebet]

From the WSJ article: "Investing in MBIA was like having a pet tiger," says Mr. Richman. "You love it, and it's fun to take out and show to friends, but every six months it turns and mauls you."

 

That statement pretty accurately describes how I feel.

 

I have a question though. I heard some discussion on the conference call about instituting a dividend by end of this year. Did I hear that correctly? And then I also heard that they might have to raise some equity too. That confused me. If you think you might have to raise equity, why would you distribute existing capital via dividends. If as an investor I wanted to pay more taxes, I would, why would you want to take post tax money from me and then distribute a taxable dividend?

[txlaw]

From the WSJ article: "Investing in MBIA was like having a pet tiger," says Mr. Richman. "You love it, and it's fun to take out and show to friends, but every six months it turns and mauls you."

 

That statement pretty accurately describes how I feel.

 

I have a question though. I heard some discussion on the conference call about instituting a dividend by end of this year. Did I hear that correctly? And then I also heard that they might have to raise some equity too. That confused me. If you think you might have to raise equity, why would you distribute existing capital via dividends. If as an investor I wanted to pay more taxes, I would, why would you want to take post tax money from me and then distribute a taxable dividend?

 

Jay Brown was talking about instituting a dividend from National to the Holdco. 

[rpadebet]

From the WSJ article: "Investing in MBIA was like having a pet tiger," says Mr. Richman. "You love it, and it's fun to take out and show to friends, but every six months it turns and mauls you."

 

That statement pretty accurately describes how I feel.

 

I have a question though. I heard some discussion on the conference call about instituting a dividend by end of this year. Did I hear that correctly? And then I also heard that they might have to raise some equity too. That confused me. If you think you might have to raise equity, why would you distribute existing capital via dividends. If as an investor I wanted to pay more taxes, I would, why would you want to take post tax money from me and then distribute a taxable dividend?

 

Jay Brown was talking about instituting a dividend from National to the Holdco.

 

Ah ok. Thanks for clarifying.

[alertmeipp]

Anyone think they may do a right offering?

[BargainValueHunter]

http://finance.yahoo.com/news/analysis-detroit-crisis-may-lift-121029630.html

 

Insurers will keep paying debt service to most bondholders but not on the more than $5 billion of Detroit water and sewer bonds, as the city will keep current on those during the bankruptcy process.

 

Despite the record low presence of insurers on the primary market, some lower-grade, lesser-known issuers have reaped the benefits of insurance, with 645 deals insured for a total value of $6.57 billion so far this year.

 

The New York Dormitory Authority issued $60 million on behalf of Roosevelt school district earlier this year. Officials said insurance with Build America Mutual (BAM) saved 10 basis points on the borrowing costs, or about $200,000.

 

In March 2012, the Lafayette Yard Community Development Corporation sold $15.3 million of bonds guaranteed by the city of Trenton in New Jersey. After paying an insurance premium of about $139,000, the issuer saved about $60,000, in present value debt service payments, according to advisers for Trenton.

[Luke 532]

Municipal bond insurers look to benefit from Detroit bankruptcy

http://www.google.com/url?q=http://www.ft.com/cms/s/0/595985b6-012b-11e3-8918-00144feab7de.html&ct=ga&cd=MTA2MjIxMzI3MTA4MzAwMzQyNDg&cad=CAEYAA&usg=AFQjCNEajo1Vi_OspKQ5E-pDKFRRpRx0iw

[muscleman]

Anyone think they may do a right offering?

 

They said this is one of the options, but they will consider all options available and won't do anything that harms the shareholder value.

I would be surprised if they eventually decide to do a rights offering. I think taking 3 years to deleverage while waiting for the muni insurance market to slowly recover will probably be better. Even if they do a rights offering and get their ratings back to AA+, then what? How much new business can they write under a 3% penetration market?

[siddharth18]

Here is an article on MBIA trade by GSO Capital partners.

 

They put in a trade around Feb 2011.

 

Is Darren Richman = valuecfa?

 

http://online.wsj.com/article/SB10001424127887323838204579000672885458550.html

 

As an outsider who just happened to read that article (without independently knowing the valuation/opportunity surrounding MBIA) - I came away with a realization that he wagered $500M to end up winning $100M? Especially if it's, as WSJ describes - "all-or-nothing" trade?

 

Also he was the one who WROTE credit default swaps for providers the holders with a asymmetric upside while retaining an asymmetric downside?

 

It may be that I'm not understanding the entire mechanics of the trade (in which case someone please correct me :))) but while $100M is (in an absolute sense) a huge number, wagering $500M over it in an "all or none" doesn't seem like the best trade ever?

[rpadebet]

Back to $11. Almost as if the BAC settlement never happened

[fareastwarriors]

Must be Bruce (Fairholme) selling his holding!

[valueorama]

Must be Bruce (Fairholme) selling his holding!

 

I think bruce is long gone.

 

Market is overly concerned about Detroit BK and Puerto Rico issues. For some reason i feel, Detroit muni bond holders are hedging themselves by shorting MBI/AGO.