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 mutually agreeable terms. 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 to a sta
The week on Risk.net, July 7-13, 2018Receive this by email