Ambac's mark-to-market gain from CDS blow-out

Ambac reported a massive $1.54 billion mark-to-market gain on credit default swaps in the first quarter - an upswing largely due to the company's own deteriorating financial condition.

According to results released on May 11, the gain was primarily the result of widening credit spreads on the firm's Ambac Assurance division.

From the beginning of the year to March 31, par CDS spreads on Ambac Assurance have ballooned from 2,105.1 basis points to 3,220.52bp, according to Bloomberg. By market clos

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