I remember they were in the news back in late fall of 2007 regarding their exposure to CDOs. AIG was supposed to be the insurer that was better capitalized. Now AIG has been bailed out and I haven’t hard bleep regarding the other two. What happened?
their losses only need to be paid out drip by drip over the course of the protected bonds. so in effect, there is no immediate hit on their CFs. thats the short answer. there are many other lovely details i am sure
lol. I was looking at these today. Ambac’s recent 10-k data shows sales as -$4,634.93 million and MBIA’s as -$282.55