tag:blogger.com,1999:blog-6798074091942701235.post8570009929421354725..comments2024-03-27T11:08:31.557-04:00Comments on Can Turtles Fly?: Ugly Day for the Bond Insurers...and for Countrywide As WellSivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6798074091942701235.post-74019779238381502252008-01-09T15:29:00.000-05:002008-01-09T15:29:00.000-05:00Buffett's Bond Insurer May Invest in Existing Comp...Buffett's Bond Insurer May Invest in Existing Company (Update1)<BR/><BR/>By Josh P. Hamilton<BR/><BR/>Jan. 9 (Bloomberg) -- Warren Buffett's Berkshire Hathaway Inc. may invest in other municipal bond insurers after launching a competing company last month.<BR/><BR/>``We're looking at multiple ways to participate in the industry,'' Ajit Jain, head of Berkshire's new bond insurer, said today in an interview. Berkshire, based in Omaha, Nebraska, is ``looking at ways to support the existing insurers in terms of reinsurance and capital,'' he said.<BR/><BR/>Berkshire Hathaway Assurance Corp. is challenging bond insurers such as Armonk, New York-based MBIA Inc. and New York- based Ambac Financial Group Inc. The two largest existing firms are struggling to retain the AAA credit ratings that give them the financial credibility to guarantee bonds issued by state and local governments.<BR/><BR/>The Berkshire unit got its first state license, from New York, on Dec. 28, and Jain has said he plans to be in the top municipal bond markets, including California and Florida. The company will insure only municipal bonds, and Berkshire has a triple-A rating and more than $40 billion in cash.cakhttps://www.blogger.com/profile/08156778168786135341noreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-8933793538595141672008-01-09T15:00:00.000-05:002008-01-09T15:00:00.000-05:00CNBC had an interesting, albeit brief, conversatio...CNBC had an interesting, albeit brief, conversation with Ajit Jain, head(?) of Berkshire's new insurance unit. <BR/><BR/><A HREF="http://www.cnbc.com/id/22575329/site/14081545" REL="nofollow">AjitJain</A>cakhttps://www.blogger.com/profile/08156778168786135341noreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-58515210150544593972008-01-09T14:28:00.000-05:002008-01-09T14:28:00.000-05:00Looks like abk will have to do debt issuance simil...Looks like abk will have to do debt issuance similar to MBI since stock issuing would be difficult given that the market cap of the company is at 1.6 bil and falling, but I think they should not have problem with it given that the debt from MBI was rated AA by the rating agency.<BR/><BR/>JohnAnonymousnoreply@blogger.com