MBIA shares fall 13 percent after analyst report
Shares of MBIA Inc. fell nearly 13 percent today after a Wall Street analyst downgraded the stock and raised questions based about the financial outlook facing the Armonk-based bond insurer.
JPMorgan Chase & Co., which cut its rating on the stock to “underweight” from “neutral,” issued a research report that cited “concerns over earnings quality and potential losses” at MBIA.
The company, hit hard by the home mortgage crisis and the weak housing market, said last week that its insured second-lien residential mortgage loan exposures worsened in the second quarter. The end result was a $353.7 million increase in incurred losses.
Shares of MBIA fell 78 cents to $5.39 in regular trading on the New York Stock Exchange.