Bond Insurer CIFG Raises Capital

CIFG, a bond insurer from France, just raised some capital in order to stave off a rating downgrade. It remains to be seen what happens to Ambac (ABK). A few weeks ago Fitch indicated that there is a moderate possibility of Ambac's rating being under threat (for reference, the smaller ones that are trying to raise capital have a high probability of losing their rating). It'll be interesting to see how the market reacts to any of this. The problem for companies like Ambac is that raising capital during a crisis, like now, is very expensive.

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