Jan. 6 (Bloomberg) -- Credit-default swaps on the MBIA Inc. unit that guaranteed toxic mortgage debt dropped to the lowest since November 2008.
Five-year swaps on MBIA Insurance Corp. fell 3 percentage points to 25.3 percent upfront as of 5 p.m. in New York, according to data provider CMA. That’s in addition to 5 percentage points a year, meaning the cost to protect $10 million of the company’s obligations against default fell to $2.53 million upfront and $500,000 annually from an upfront price of $2.83 million.
The insurer won a court ruling this week against Bank of America Corp. that will help it as it seeks to recover losses on home loans made by the Charlotte, North Carolina-based bank’s Countrywide Financial unit.
To contact the reporter on this story: Matthew Leising in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Shannon D. Harrington at email@example.com