Using Veritas to Construct the "Per…

29-04-2017 Hits:93268 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:84527 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:84442 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:89001 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:87486 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:87290 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:58455 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:86823 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:86440 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:86790 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:93084 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:90422 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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 One would think that I would get more respect out of the institutional circles...

From Bloomberg :

April 7 (Bloomberg) -- MBIA Inc. was sued by Third Avenue Management LLC, the New York company founded by mutual fund manager Martin Whitman, over claims the insurer’s split of its bond-insurance businesses hurts debt holders. See Is MBIA About to Pull the Wool Over the Market's Eyes?.  As a matter of fact, if you read "Super Scary Halloween Tale of 104 Basis Points Pt I & II, by Reggie Middleton" you shouldn't be touching this company with a teflon tipped ten foot pole. But then again, who listens to me???....

Three mutual funds managed by Third Avenue bought notes issued by MBIA Insurance Corp. in February 2008 based on assurances that the company was recapitalizing following losses in its structured finance insurance business, according to a statement distributed yesterday by PR Newswire. You really should have known better. You can't say I didn't warn you. See After Reading the Prospectus and Reviewing Potential Losses, Would You Buy These Notes?, MBIA goes back to the well again. Who will be silly enough to invest in these securities, though...  and A few more thoughts on MBIA, S&P and what AAA really means.

MBIA, the largest bond insurer by outstanding guarantees, said in February it was transferring $5 billion in cash and its public finance business to another entity that has no obligation to the notes, Third Avenue said in its statement. The lawsuit, filed in Delaware state court, alleges the transfers were illegal and unfair and seeks to unwind them, according to the statement.

“MBIA sold us these surplus notes, and then to our surprise and distress, stripped away the principal assets as well as the only going concern operations within MBIA Insurance Corporation,” Whitman, chairman of the Third Avenue funds, said in the statement. “That’s wrong, and a big disappointment to us, especially after we went to bat for them with our pocketbooks and more.” Again, I say, read my blog. See An analysis of mononline bifurcation vs. Buffet reinsurance.

Debt Guarantees

MBIA, based in Armonk, New York, said in February that it will split its municipal bond insurance business from the mortgage-related debt guarantees that led to the loss of its top credit ratings.

The company transferred guarantees on about $537 billion of municipal bonds to MBIA Insurance Corp. of Illinois, which it plans to rename National Public Finance Guarantee Corp.

The new unit will be separate from an existing one that guarantees complex mortgage-linked securities and other debt, which plunged in value during the U.S. housing and credit crises, prompting a 92 percent drop in the company’s shares since October 2007 and the ouster of its chief executive a year ago.

MBIA’s actions were legal and the Third Avenue’s lawsuit is without merit, MBIA Chief Executive Jay Brown said yesterday in an e-mailed statement.

“We appreciate Third Avenue’s past support of MBIA and regret that they felt” the lawsuit was necessary,” Brown said. “Our transformation should not have been a surprise, however, as I have been clear to all stakeholders since I returned a year ago that our corporate objective was to separate our structured and municipal businesses.” He's got a point here. Let me translate: I threw the sucker punch, and these sucker's are catching a 'tude 'cause I played them for suckers! I'm glad nobody paid attention to that blogger guy back in '07 with that scary Halloween story!

The filing of the lawsuit couldn’t be independently confirmed through court records. Brian Maddox, a spokesman for New York-based Third Avenue, didn’t return a voice-mail message left after hours.


1. MBIA in the news recently... I am not going to say I told you so.
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...ent to attract greater interest, according to investors familiar with the deal on Friday. The issue of so-called surplus notes by MBIA Insurance Corp. is part of an effort by the bond insurer to buoy ...
Saturday, 12 January 2008

...o;), a wholly-owned subsidiary of MBIA Inc. (the “Company”), issued $1.0 billion principal amount of Surplus Notes due January 15, 2033 (the “Notes”) with an initial interest r...
Thursday, 17 January 2008

3. Is MBIA About to Pull the Wool Over the Market's Eyes?
(Reggie Middleton's Boom Bust Blog/MyBlog)
... The doubt about MBIA's solvency hurts stakeholders by reducing the value of MBIA's common shares, debt, and surplus notes, and severely diminishing the market value of credit enhancement provided...
Sunday, 22 February 2009

4. Fitch finally found my blog and cut Ambac's rating, So what's next...
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...s know you weren't a AAA risk. Let's stop the shenanigans, please... MBIA's surplus notes plunged as low as 70 cents on the dollar yesterday, indicating a yiel...
Saturday, 19 January 2008

...e it. Let's see who'll be silly enough to actually buy these!  I browsed through the prospectus of the last surplus notes offering and found that anyone who actually read the prospectus would hav...
Thursday, 07 February 2008

6. A few more thoughts on MBIA, S&P and what AAA really means
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
Observation: MBIA is forced to borrow at deep junk rates (14%) in a 7% environment (surplus notes have a slight premium). These notes then go on to trade at an immediate discount, yielding 20%.
Tuesday, 26 February 2008

7. An analysis of mononline bifurcation vs. Buffet reinsurance
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
 The following is an interesting commentary forwarded by one of the boombustblog readers. I am enthused at the level of knowldege and common sense prevalent in this community. It really mak
Thursday, 28 February 2008

(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
The following is the MBIA "LETTER TO OWNERS DATED MARCH 3, 2008" excerpt and my comments. My next post will be my comments on out ongoing monoline research, and in particular Assured Guarant
Thursday, 06 March 2008

9. This company needs to be put out of its misery
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
I haven't written much about MBIA lately, primarily because I had closed my bearish position on them at about $9 per share. This was originally initiated in the $60's last year, and really intensifi
Monday, 12 May 2008

10. More on MBIA Surplus Notes
(Forum/Insurers and Insurance)
I was just reminded that surplus notes, in addition to their preferential treatment as quasi-equity, share the equity like attribute of being 2nd tier to superior claims - such as that brought down fr
Sunday, 13 January 2008

11. Re:More on MBIA Surplus Notes
(Forum/Insurers and Insurance)
...dings Plc, Europe?s biggest bank by market value, set up a collateralized debt obligation to repackage so-called surplus notes sold by insurance companies to bolster capital, according to Standard &am...
Friday, 18 January 2008