How to Profit From ABK / MBI Collapse?

Discussion in 'Trading' started by RetailBuilder, Jan 18, 2008.

  1. Which IB's, reinsurers, or others have the most exposure?
  2. Daal


    short them. MBI have SSFs. squeezes can be nasty though
  3. SFK has a small (0.02728) weighting in ABK and (0.049727) in MBI

    But it will participate well in the domino effect.
  4. EDIT: SKF not SFK
  5. CNBC had a good report (for a change) on MBI and ABK, go to their website and see if you can find it worth watching.
    Said Mer and C will get hit hard by their bankruptcy.
    This is a good story to research it's impact on the financial markets and your $$$$.
  6. Thanks to all. I've been holding short positions in both ABK and MBI for awhile, some expire today and some in Feb.

    I was looking for additional dominos to fall should the government not take them over and they collapse. I did see where C and MER are the current odds on favorites of the IB's to get hurt.

    I have also read that RNR and PRE both have sustantial reinsurance exposure to MBI.

    Any other ideas?
  7. Daal


    that downgrade will raise some capital requirements to mbia since they reinsured some stuff with ambac