Stock Market

After being beaten down to single digits, MBI has been climbing back strong. A clear winner amongst the financial stocks, MBI had some news after hours that prompted this amazing move:

MBIA Inc Reinsuring $184B portfolio of investment-grade US public finance credits insured by Financial Guaranty Insurance Company, receiving unearned upfront premiums of about $741M

- The public finance portfolio consists exclusively of investment grade credits, primarily in the general obligation, water and sewer, tax-backed and transportation sectors, and does not contain any credit default swap contracts, below investment grade credits or other credits inconsistent with MBIA’s credit underwriting standards.
- The reinsurance will be provided on a “cut-through” basis, enabling FGIC’s policyholders to receive the benefit of MBIA’s reinsurance by allowing them to present claims directly to MBIA.