Using Veritas to Construct the "Per…

29-04-2017 Hits:87156 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:81086 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:80925 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:85398 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:81900 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:84088 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:55145 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:83338 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:83083 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:82975 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:89223 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:86945 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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Hat tip to TradingBR:

Rating Action: Channel Reinsurance Ltd.

Moody's puts Channel Re and Two Rock on review for downgrade

New York, January 23, 2008 -- Moody's Investors Service announced today that it has placed the Aaa insurance financial strength rating of Channel Reinsurance Ltd. (Channel Re) on review for downgrade. At the same time, Moody's also placed on review for downgrade the Aa3 rating assigned to contingent capital securities issued by Two Rock Pass Through Trust, a related financing trust.

Channel Re is a financial guaranty reinsurance company dedicated to providing reinsurance capacity to MBIA Insurance Corporation (MBIA), the New York based financial guaranty insurance company. Channel Re has reinsured a broad range of risks from MBIA, including recent vintage second-lien mortgage securitizations, as well as significant amounts of ABS CDOs containing such exposures.

Moody's stated that today's rating actions were motivated by growing concern about the possible effect of these mortgage-related risks on Channel Re's credit profile in light of the prospect for worsening performance in the mortgage market and the inherent volatility in RMBS and ABS CDO exposures.

"As part of its review, Moody's will evaluate the possible impact of this exposure on Channel Re's risk-adjusted capital adequacy and franchise value", said Ranjini Venkatesan, a Moody's analyst. "We will also assess possible changes in the value that Channel Re provides to MBIA as a result of both companies' evolving credit and franchise profiles in the rapidly changing financial guaranty markets."

Moody's additionally noted that Channel Re's credit profile also has implications for the credit profile of MBIA, with strain at Channel Re placing incremental pressure on MBIA's capital adequacy, and will be a consideration in the ongoing review of MBIA's ratings. MBIA's ratings were placed on review for downgrade on January 17, 2008.

Now, the owner's of Channel Re, Rennaisance Re and Partner Re have already marked their investments in Channel Re down to near zero (see my take ). Again, Moody's is way behind the curve, being much more reactive and not very predictive. More importantly, Channel Re was formed exclusively to reinsure MBIA, forcing an extreme amount of concentration and correlation risk. MBIA also owne 17% of Channel Re, and is also on negative ratings watch. Given the outlook of the owners of Channel Re, a downgrade should be inevitable, but who knows when dealing with the big three. If a downgrade were to occur, it should immediately undercapitalize MBIA, and will compound the problems that would occure if they themselves get downgraded.

 

Today's rating actions are as follows:

 

Channel Reinsurance Ltd.

Current Rating: Aaa, on review for downgrade

Prior Rating: Aaa

 

Contingent Capital Securities issued by Two Rock Pass Through Trust

Current Rating: Aa3, on review for downgrade

Prior Rating: Aa3

 ___________________

In addition:

MGIC Provides Investor Update
MILWAUKEE (January 22, 2008) — MGIC Investment Corporation (NYSE:MTG) announced today that year-end 2007 delinquency inventory was 107,120 loans, an increase of approximately 16,000 loans from the end of the third quarter. Cure rates have continued to deteriorate, resulting in a higher percentage of delinquent loans that become claims, and average claim size has also continued to increase. As a result, the Company expects incurred losses for the fourth quarter of 2007 to approximate $1.3 billion. The Company said its insurance in force at year-end 2007 was $211.7 billion.
The Company also said it is increasing its paid loss forecast for 2008 to $1.8 — $2.0 billion.
During the fourth quarter, the Company made a decision to stop writing the portion of its bulk business that insures loans which are included in Wall Street securitizations. The Company is analyzing the accounting implications of that decision on its fourth quarter results.
The Company is issuing this press release to provide current information to all investors in advance of its February 13, 2008 earnings call. The Company is not undertaking any obligation to update any information in this press release regarding the Company’s expectations or any forward-looking statements. No investor should rely on the fact that such information is current at any time other than the time at which this press release was issued.
The failure of the pure mortgage insurers to pay claims will fall directly on the GSEs such as Fannie Mae and Ginnie Mae, who buy high LTV loans that are insured by PMI and MGIC. If this occurs, and draws down the capital of this nation's backstop for mortgage financing, the housing mess we see now will seem like Disney Land compared to what may lie ahead.