Changing tone on MBIA
I have just sold my small holding of MBIA. I have been convinced - following a careful examination of documents issued for GICs - that this post is incorrect in several important ways. In particular the GICs at MBIA have a larger effect on parent company liquidity than GICs at Ambac.
I still have no opinion whatsoever on the solvency of the insurance company. [I intend to do that work - and if I form an opinion that is worth having then I will again take a position in the stock.] I now however take the view that if the insurance company is bad the parent company is likely bad.
And that the statement by Jay Brown about parent company liquidity in a recent letter to shareholders is actively misleading.
I have retained my holding in Ambac.
I make plenty of mistakes. This sort of mistake I enjoy. I made a profit.