Ambac: Still In Trouble

April 2008 | Corporate Financing News Alert

As the US mortgage market shows no sign of revival, Ambac Financial Group, along with other bond insurers, continues to suffer. After struggling to raise capital in March, on April 23 Ambac posted higher than expected first quarter losses. The Q108 loss of US$1.66bn sent the insurers stock into freefall and erased 40% of its shareholder equity. The stock, which closed at US$3.46 after the report, has fallen 97% since May 2007.

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