MBIA, Inc., (NYSE: MBI) is the world's largest bond insurer, and a financial guarantee and investment management company. It operates as a monoline insurer earning revenues by charging fees for investment management services and by insuring securitized debt. MBIA guarantees that if a corporate or municipal bond fails, it will cover the interest and the principal amount. In 2010, MBIA had total revenues of $894 million and a net income of $53 million.
MBIA's largest competitor Ambac has filed and declared for Chapter 11 bankruptcy in New York, thereby leaving MBIA as the unquestioned leader in the bond insurance industry. However, MBIA is not yet in the clear. A large part of MBIA's solvency depends on billions of dollars that MBIA expects to receive from a lawsuit against banks. MBIA claims that the banks lied about the creditworthiness of mortgage backed securities that MBIA insured. However, the banks are fighting the claims, and their financial statements do not reflect a potential charge in cash outflows. Whether MBIA is ultimately successful in obtaining the money from the banks will play a major role in the future viability of MBIA.(Read more at Wikinvest )
- Company Overview
- Business and Financial Metrics
- Business Segments
- U.S. Public Finance Insurance
- Structured Finance and International Insurance
- Investment Advisory Services
- Key Trends and Forces
- Litigation Surrounding National Public Finance Corp.
- Credit Spreads
- Credit Ratings
- Alternative Products