Bloomberg News

MBIA Insurance Credit Swaps Drop to Lowest Since November 2008

January 09, 2012

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

To contact the editor responsible for this story: Shannon D. Harrington at

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