Sep. 30 at 6:31 AM
$AMBC There is no buyer for
$MBI National insurance company (subdiary). That is the reason, why MBIA Holding is bleeding out Nationals financial reserves, to pay them self dividends. MBIA Nationals insurance exposure (Monolinerbook) is 3 times greater then that from AMBAC´s Legacy (AAC) and both got near the some claims paying ressouces, so that MBIA National has a cpr of 31 insurances to 1 money and AMBAC´s Legacy got a cpr of 9 insurance to 1 money. This is why AMBAC could sell it´s AAC.
The next mistake is the price you think Oak is paying. They pay
$420 million cash and BEATS (is now part of Legacy (Value
$405 million) and will be transferd to AAC too), so total AMBAC get
$825 million for his Legacy.
AMBAC legacy has enaugh income from his investments to generate positive EBITDA and MBIA do not.
Next important thing, AMBAC new insurance de novo will earn money (2 of 5 do already) and increase asset value and income to Holding of AMBAC. The other 3 follwing in 6 month.
