A follow up to yesterday’s post on whether or not it might be time to look at the sector. You may want to check it out before going on.
Here is an interview with MBIA (MBI) CEO Jay Brown. It should be noted Brown was not at the helm when things went south.
Part 1
Part 2
What I took from this was the dire valuations currently being given to their portfolio’s. Should these estimates, currently “8 times worse than what we saw in January” not come to pass. The upside here is tremendous.
These are beginning to look very appealing. I think perhaps waiting until early summer (1 more quarter) to see how the businesses are doing is the thing to do…
Disclosure (“none” means no position):None
3 replies on “More on Bond Insurers”
Interesting. When you talk about the potential upside.. do you believe that they will reach a pre-meltdown valuation level?
no, but even 50% of it makes the stocks 300% plus higher than now
I am considering speculating in the troubled sector with a small portion of my portfolio.. until now was leaning toward Sallie Mae.