To be priced on Tuesday, March 11th. This gets a nettlesome problem out of the way for a couple of years.
Padilla promises balanced budget next year and important pension issues involving educators and judges largely solved.
Are you now thinking that S&P's (or other rating agencies) will take National to AAA in short term? My understanding from CEO Jay Brown and analyst (Mark Palmer) is that the company is seeking AA and will be able to initiate insuring munis with this rating.
NOL's at year-end 2013 $2.7 billion. As sleestack says, "company expects to use up."
Management confirmed that number during Investor Conference earlier today.
That equates to better than $13.50 per share.
And Syncora is up another 46% just this morning. All of the bond insurers looking good so weakness today is entirely Ukraine/Putin based. Better days are ahead.
I quoted his reply to my query in my 12-22-13 posting here on Yahoo. If you don't believe me, or require verification, Daimond and can be reached at their corporate headquarters via e-mail.
Here is something else to consider. If, in fact, BofA had exercised their option then you would have seen a 5% bump in the shares outstanding listed on Yahoo Finance, MSN Money.or other institutional ownership sites. That has not
If you read the 12-22-2013 posting I made on this subject you would know that Greg Diamond, MBIA's Investor Relations head has confirmed that BofA has not exercised their option.
Tommy: see my post of 12-22-013, "Bank of America and MBIA". Nasdaq is wrong, as is MSN Money as is Yahoo as to BofA institutional ownership.
Where is your proof or link as to BofA executing the warrants? Where is the 13-F filing?
Tony, just for clarification and accuracy. BAC does not have a 5% ownership stake in MBI. They do have warrants that, if exercised, would give them a 5% equity interest. And on 12-26-13, MBIA announced that they had repaid the balance on the BAC credit agreement closing out the facility.
For MBIA/National to even consider returning to insuring municipal bonds they need to get the PR problem solved. It is the elephant in the room. The current administration has been following this closely, even agreeing to budget the funds to obtain a new status report as to PR statehood from the island's residents. Whether it is statehood or a ring fence in the form of a federal backstop some measure will need to be initiated.
I believe the weakness this morning is attributable to an article in the WSJ on Puerto Rico munis trading to yield nearly 10% at year-end. It's old news but still disturbing.
Of course, both Ambac and Assured are in the same boat as to exposure but for some reason it is always MBIA that gets crunched the most. The article points to a possible sale of new PR bonds in the first half of 2014. That will be interesting if not problematic.
Warburg holds 24% of MBIA. They have an enormous incentive to do everything possible to maximize their investment. They also have a cost basis at least double the current market price. . Additionally, they have in-house expertise to evaluate the pros and cons of any proposal. I am confident that they would not enter into selling ResCap claims without having thought the transaction potential through very carefully.
The ResCap adds $800 million less the $72 million to close-out the BofA credit facility, net $728 million to MBIA. . $1.7 billion squirreled away from earlier BofA settlement for total of $2.428 billion. MBIA's current market cap equal to $2.26 billion. Put another way, at $11.75 per share you could reacquire all the shares and still have $200 million cash! Anyone remember Saul Steinberg? He once famously stated, "If the market doesn't like my numbers I'll simply buy them back." Food for thought.
Ambac up 11% plus ALONE today! AGO up, again, and now within striking distance of its 2013 high!!!. Even lowly Syncora is at or near 90 cents, wasn't that trading at 55-60 cents a few weeks ago?.
But MBIA, it gets absolutely NO respect. Can't even trade above the funds MBIA has received or booked from the $1.7 billio BofA setlment plus the $800 million coming from ResCap. That's $2.5 billion folks, or over $12.50 per share. National has virtually quarantined the $1.7 billion --- and the ResCap funds, net of paying any loan balance to BofA, is just more money to anchor National's bid to S&P's for a bump to double A.
Hopefully the Dangerfield days are close to ending----it's mostly been based on tax-loss selling and the recent buyers have garnered all the low hanging fruit. But those days are fast drawing to a close.
Though both Yahoo Finance and MSN Money, plus one other institutional ownership site, show BofA with a 5% plus ownership of MBIA this is the result of a filing that is in error. It was filed after the 2013 settlement and reflects the 9.94 million warrants that were issued, but HAVE NOT BEEN exercised, as if this represents a form of ownership. He or she then added in two other BofA entities that hold MBIA shares, probably in nominee name only, and came up with the 13-HR filing. I would expect that this will be corrected at some point.
Greg Diamond, Investor Relations at MBIA, has confirmed this. He said, "Notwithstanding BofA's 11/14/13 13F-HR filing, the 9,942,458 shares shown as MBIA Inc. common stock are actually unexercised warrants to purchase MBIA Inc. common stock."
I'm pleased you posted this. I showed 2.488 million shares right at the close and then two minutes later the recap had volume at 2.585 million. Then sometime later this was revised by inclusion of the 467.8 you show from TD plus another block, inside of 100K, in AH trading, bringing total to 3.2 million. With an hour to go, volume was 1.497 shares so they more than doubled the activity in the final 60 minutes..
Re your comment about BofA-MBIA. I found this page with ownership at just over 5%, as of 9-30-13. I am now wondering if this ownership is separate from any exercise of the settlement option. Tommiegun reported on this Board that it was the exercise that generated the investment. Yet I cannot find where the exercise occurred. Moreover, BofA has until 5-18 to trigger the option; why would they have done this so early, 3rd qtr 2013? Unless there is something I have missed I think Tommiegun was wrong in assuming BofA's ownership of just over 5% was predicated on the option exercise and that the ownership BofA reported at 9-30 is separate. Can you, or anyone, clarify this?
I went back to the Reuter's story of December 11th and noticed in the third paragraph this statement, "The plan, based on a $2.1 billion contribution from Ally, could go into effect as early as next week, and definitely by December 24, a lawyer for ResCap said."
I don't know where or when a Wednesday timeline came from but whether it is this week or early next we might finally get complete legal approval on this case.
Lee, the MBIA website is very selective in disseminating news. I would have thought that a press release should/would have been issued when BofA exercised their option and purchased 10 million shares. Tommygun reported here that this occured last month yet I have never seen anything public to verify the transaction.