I can see an upgrade coming soon, syncora settle with jpm for $400 million, which is close to $1.1 for $360 million booked loss reserve on syncora balance sheet for emc 1 and 2. Ambac will be rolling in cash soon, and could start any number of businesses with 4-5 billion dollars on their balance sheet.
Article says: Loss reserves at the end of 2013 hit a net of $2.2 billion of estimated representation and warranty breach remediation recoveries, down from $2.4 billion the previous quarter.
Why did Ambac lower their estimates of value of lawsuits, especially right after the BofA 10K came out with the 2.5 billion number for B of A lawsuit alone? Looks like they are trying to underreport earnings to keep the noise down
My guess is yes until we get passed the 1 year bankruptcy point. At that point we will go hard for the lawsuits and probably acquire new business for underwriting. Who knows...maybe time to start a PMI division? There isn't much competition.