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Assured Guaranty Ltd. Message Board

  • matthew_and_january matthew_and_january May 10, 2012 5:20 PM Flag

    Deutsche Bank Settlement in the 10-Q

    So looks like a slight beat on 1Q EPS and revs, and a nice cash inflow from DB settling RMBS claims plus DB ponying up collateral for loss reinsurance. Overall seems like pretty good news. Thoughts out there?

    From the 10-Q

    On May 8, 2012, Assured Guaranty reached a settlement with Deutsche Bank AG and certain of its affiliates (collectively, "Deutsche Bank"), resolving claims related to certain RMBS transactions issued, underwritten or sponsored by Deutsche Bank that were insured by Assured Guaranty under financial guaranty insurance policies and to certain RMBS exposures in re-securitization transactions as to which Assured Guaranty provides credit protection through CDS.

    Assured Guaranty received a cash payment of $165.6 million from Deutsche Bank upon signing of the agreement (the "Deutsche Bank Agreement"), a portion of which will partially reimburse Assured Guaranty for past losses on certain transactions. Assured Guaranty and Deutsche Bank have also entered into loss sharing arrangements covering future RMBS related losses, which are described below. Under the Deutsche Bank Agreement, Deutsche Bank AG will place approximately $282.7 million of eligible assets in trust in order to collateralize the obligations of a reinsurance affiliate under the loss-sharing arrangements, and the Deutsche Bank reinsurance affiliate may post additional collateral in the future to satisfy rating agency requirements.

30.00-0.08(-0.27%)Oct 27 4:02 PMEDT