Summary
NEW YORK (HedgeWorld.com) - Billionaire investor Wilbur Ross, rumored to be a potential buyer of troubled bond insurance company Ambac Financial Group Inc., said he is not optimistic about the prospects of the bond insurance industry in general.
"A lot of pain is going to have to be borne by a lot of people, including by the counterparties," the chairman and chief executive of WL Ross & Co. said on Thursday [Jan. 31], speaking at a Dow Jones conference in New York. His views reflect what many investors and recent headlines are predicting: The prospects of defaults in the monoline sector become more real each day. Mr. Ross did not comment on his alleged plans to acquire Ambac.See the full content of this document
Extract
Wilbur Ross Predicts Monoline Pain
If one or all of the large U.S. bond insurers default, the repercussions could be significant, including bond sell-offs, wider credit spreads and issues with credit default swaps. In addition, credit problems would expand to the municipal bond market, which...
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