MBIA says subprime not a threat
-
- August
- 2
MBIA Inc., the Armonk-based bond insurer, said the recent problems in the subprime mortgage market are not a major risk for the company. In a conference call with investors yesterday, MBIA Chief Financial Officer Chuck Chaplin said subprime exposure is not a threat to the company’s balance sheet. Subprime accounts for less than 2 percent of the company’s $651.8 billion portfolio, according to MBIA.
The subprime sector of the mortgage market, which makes loans to borrowers with weaker credit histories, has faced mounting problems as the housing market weakened and interest rates rose. A steep sell off in financial shares recently partly reflected investor fears that the subprime fallout and deteriorating credit quality could spread to the general economy. Yesterday, MBIA’s shares fell 58 cents to $55.37.
This entry was posted
on Thursday, August 2nd, 2007 at 6:59 pm by Jay Loomis.
You can follow any responses to this entry through the RSS 2.0 feed.
Share and Enjoy: 
| 
Print
| 
Email
