Does anyone have any idea about why AMBC is up almost 13% today? Are people realizing that a potential settlement with BofA could be a shot in the arm for the stock? Does it have something to do with the reorganization of the segregated account?
My guess is that the increase in cash payment for the seggregated accounts is a reflection of increased
financial strengh of Ambac. Accordingly, the shares jumped in price to reflect the new financial strength.
The increase in cash payments is indicative that the studies that valued Ambac shares near 20 do not reflect reality.
From the amended filing, wci estimates segragated losses to be less than expected and approximately 1 billion less than ambac stated loss reserves, hence the increased payment which is almost 92% recovery for policy holders.