MBI posts Q2 profit on its widening credit spreads

overdrunk

ug 9 (Reuters) - MBIA Inc, (MBI.N), the largest U.S. bond insurer, posted a shareholder profit of $1.3 billion, as it booked gains from the weakening of the company's perceived credit quality.

The Armonk, New York-based company posted income of $6.32 a share, compared with $895 million, or $4.30 a share, in the same quarter last year.

MBIA recorded $1.5 billion of pre-tax profit from the fact that it cost more to insure MBIA debt against default at the end of the quarter than at the beginning. That means the company's derivatives liabilities are theoretically worth less, allowing MBIA to book a gain.

MBIA suffered big losses during the credit crunch after underestimating its potential losses from guaranteeing repackaged subprime mortgages and other debt. The bond insurer is repaying its obligations mainly using the premium it earns on existing policies and proceeds from lawsuits and legal settlements.

MBIA said it expects its holding company to have enough cash through 2015 even without further payments from operating subsidiaries. (Reporting by Dan Wilchins. Editing by Robert MacMillam)

哪位老大分析分析MBI的前景如何啊？6.5$/Share earning per quarter, 股价却trade 在10元左右。是不是预示要翻番？

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Bencat

needs someone who knows bond insurer business do FA for MBI.