Ambac dumps $1.4 billion CDO-squared, scraps Citi guarantee

Bond insurer Ambac has rid its books of exposure to a $1.4 billion CDO-squared transaction, by commuting a guarantee written on it for arranger Citi.

Commuting means scrapping insurance contracts under terms agreeable to both parties. In the case of the CDO-squared, Citi received a final cash payment of $850 million from the monoline.

The deal originally referenced double-A rated classes of CDOs of asset-backed securities, most of which have now been downgraded to sub-investment grade, according t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: