Is anyone seriously holding this overnight?? deja vu all over again-
not a good idea. Read all the disclosures. Bof A given shares @$9.5ish, also this settlement is 60% of whatwas baked in. Isold and bought June $12 PUTS. Everytime this stock has done this , it has gone back down within 5-20 days.
MBIA says settlement substantially improves liquidity, capital risk profile
MBIA said the settlement payment from Bank of America, including the MBIA Inc. bonds, will be used to repay the remaining outstanding balance and accrued interest on MBIA Corp.’s secured loan from National in accordance with its terms. The secured loan balance of approximately $1.7B as of April 1 had been reduced to approximately $1.6B as a result of the receipt of $110M on May 2 in settlement of representation and warranty related litigation with Flagstar Bank. The value of the BofA settlement is consistent with amounts recorded to MBIA Corp.’s statutory balance sheet at year-end 2012, the company said. However, the settlement substantially improved its liquidity and capital risk profile by eliminating potentially substantial near-term payment obligations and $7.4B of insured exposure, providing funds for the repayment of the secured loan from National and making a $500M secured loan facility available for general corporate purposes.