How to Profit From ABK / MBI Collapse?

[RetailBuilder]

Which IB's, reinsurers, or others have the most exposure?

 

[Daal]

short them. MBI have SSFs. squeezes can be nasty though

 

[cgtrader]

SFK has a small (0.02728) weighting in ABK and (0.049727) in MBI

But it will participate well in the domino effect.

 

[cgtrader]

EDIT: SKF not SFK

 

[1flyfisher]

CNBC had a good report (for a change) on MBI and ABK, go to their website and see if you can find it worth watching.
Said Mer and C will get hit hard by their bankruptcy.
This is a good story to research it's impact on the financial markets and your $$$$.

 

[RetailBuilder]

Thanks to all. I've been holding short positions in both ABK and MBI for awhile, some expire today and some in Feb.

I was looking for additional dominos to fall should the government not take them over and they collapse. I did see where C and MER are the current odds on favorites of the IB's to get hurt.

I have also read that RNR and PRE both have sustantial reinsurance exposure to MBI.

Any other ideas?

 

[Daal]

that downgrade will raise some capital requirements to mbia since they reinsured some stuff with ambac