Friday, December 14, 2007

WHEEEEEEEEEEEEEE

ACA Capital, which insures a bunch of big shitpile, has been delisted by the NYSE.

Earlier story from FT:


ACA Financial Guaranty could default on insurance agreements if Standard and Poor’s chooses to downgrade the bond insurer’s rating, a credit derivatives lawyer and a market participant told Debtwire. Late on Friday S&P placed ACA’s rating on negative watch.

In total, ACA Financial insures USD 69bn of asset backed and corporate bonds for 31 counterparties through the use of credit default swap contracts, according to SEC filings. Those contracts include coverage of USD 25.7bn in AAA rated ABS CDO notes backed by subprime RMBS, many of which are held on the balance sheets of investment banks.


If they go under, a lot more big shitpile goes on the books as it'll no longer be insured. Though it's reasonable to assume that the insurance is pretty much phantom at this point anyway.

(ht reader w)