[movermike] movermike: Barrons: ACA a "ticking bomb"

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Posted by movermike:
Barrons:  ACA a "ticking bomb"
http://www.movermike.com/posts/1186462020.shtml


   ACA Capital Holdings (ACA)

   [aca]

     [1]ACA Capital Holdings, Inc., a holding company, provides
     financial guaranty insurance products to participants in the global
     credit derivative, structured finance capital, and municipal
     finance capital markets. It also provides asset management services
     to specific segments of the structured finance capital markets. The
     company selects, structures, and sells credit protection
     principally on highly rated liabilities of structured financings,
     including layers of risk of single tranche transactions and fully
     distributed CDOs, MBS and ABS transactions. ... In addition, it
     also serves as an asset manager of collateralized debt obligations
     for the benefit of the third party investors.

   [2]Barrons refers to ACA as a "ticking bomb" with a 181:1 capital
   leverage ratio in subprime that could go either way.

   Wall Street firms whose $61 Billion of securities ACA insured, would
   also be hurt. We are talking about Bear Stearns (BSC), Merrill Lynch
   (MER), Lehman Brothers (LEH), and Citigroup (C) along with some 25
   other Wall Street counterparties.

   [3]ACA Capital Holdings (ACA) [4]Derivatives [5]Mover Mike

References

   1. http://finance.yahoo.com/q/pr?s=aca
   2. http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-08-05T190141Z_01_N05331309_RTRUKOC_0_US-ACACAPITAL-SHARES-BARRONS.xml
   3. http://technorati.com/tag/ACA+Capital+Holdings+(ACA)
   4. http://technorati.com/tag/Derivatives
   5. http://technorati.com/tag/Mover+Mike