MBIA case study

An overview of Ackman's case against MBIA

  1. Overview of MBIA

    MBIA was founded in 1973 as the Municipal Bond Insurance Association and is currently the largest bond insurer.When MBIA insures a bond t...

    1 min read
  2. Bill Ackman

    Bill Ackman was born son of Lawrence David Ackman a chairman of a New York real estate financing firm. He receiveda Bachelor of Arts and ...

    1 min read
  3. Gotham's original report against MBIA

    MBIA operates its insurance subsidary, MBIA Insurance Corp. The insurance company's AAA rating is critical to the success of the entire e...

  4. Short Story of MBIA


  5. High Leverage

    At the end of September 2002 MBIA had $5.5 billion of shareholders' equity supporting $764 Billion of outstanding guarantee liabilities. ...

    1 min read
  6. Credit Default Swap (CDS)

    "A swap designed to transfer the credit exposure of fixed income products between parties. A credit default swap is also referred to as a...

    1 min read
  7. CDOs

    CDO: Collateralized Debt Obligation, is a pool of interest paying assets, such as mortgages, bonds, and loans, that can be cut into piece...

    1 min read
  8. Special Purpose Vehicles (SPVs)

    SPV's or Special Purpose Vehiclesare subsidiaries of companies that have their own financing. Many SPV's are used to limit risk from the ...

    1 min read
  9. Ackman's Greatest Short Ever Told Began With Handshake Refused

    March 24 (Bloomberg) -- As the taxi pulled away from Grand Central Station on a late November afternoon in 2002, Bill Ackman was bracing ...

  10. Bloomberg's Richard Discusses Ackman's Bet Against MBIA: Video

    March 24 (Bloomberg) -- Bloomberg's Christine Richard talks with Deirdre Bolton about her new book "Confidence Game: How a Hedge Fund Man...

  11. MBIA Stock Price Timeline

    A timeline comparing the stock prices of MBIA and the S&P 500 index.

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  12. RyKnow shared a chart on StockTwits

    Not a defender of Ackman. Point of this chart is sizing/weighting is more important than timing. http://stks.co/aze9

  13. Ackman Devoured 140,000 Pages Challenging MBIA Rating

    Jan. 31 (Bloomberg) -- It was the $109,000 photocopying bill that hedge fund manager William Ackman says made him realize how much he'd r...

  14. Short Seller Sinks Teeth Into Insurer

    This article overviews Ackman's relentless attempts to try to persuade people to believe MBIA did't deserve it's AAA rating in the years ...

  15. Ackman's Letter to Moody's

    Each of you, according to your recent public statements, is in various stages of updating your ratings of the bond insurers. Unfortunatel...

  16. Credit Rating Decreases

    On April 4, 2008 Fitch cut MBIA's credit rating to AA despite MBIA asking Fitch not to rate their credit anymore. Then on June 4, 2008 Mo...

    1 min read
  17. Jay Brown's big MBIA mess

    MBIA breaks up the company into two separating companies. Jay Brown the CEO of MBIA tries to sue investment banks for hiding risk of MBS,...

  18. Ackman's position

    Bought credit-default swaps against $2 Billion worth of MBIA debt.Short positions on MBIA stockHe went short around $45 and covered aroun...

    1 min read
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