Using Veritas to Construct the "Per…

29-04-2017 Hits:87194 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:81115 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:80956 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:85428 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:81928 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:84116 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:55177 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:83373 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:83112 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:83004 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:89256 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:86977 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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Dec. 28 (Bloomberg) -- Billionaire investor Warren Buffett is starting a bond insurer to take U.S. local-government business away from companies including MBIA Inc. and Ambac Financial Group Inc., the Wall Street Journal reported.

Berkshire Hathaway Assurance Corp. opens for business today in New York State, Buffett, chairman of Omaha, Nebraska-based Berkshire Hathaway Inc., said in an interview with the newspaper...

Buffett, who said in October he was looking for investments to absorb $45 billion of cash, is challenging the bond insurers as they struggle to retain the AAA credit ratings that allow them to guarantee debt. The top rankings of MBIA, Ambac and other so-called monolines are under scrutiny amid concern they don't have enough capital for the $2.4 trillion of debt they guarantee.

 

``The monolines are hurting so now is a good time for Buffett to be getting into the market,'' said Matthew Maxwell, a London-based credit analyst at Calyon, the investment banking unit of Credit Agricole SA. ``Investors might feel more comfortable investing in bonds insured by Buffett than those backed by an insurer with the legacy of the credit crisis hanging over them.''

Buffett, 77, told the Journal he will also seek permission to operate in California, Puerto Rico, Texas, Illinois and Florida.

Berkshire Hathaway has AAA ratings from Fitch Ratings, Moody's Investors Service and Standard & Poor's and its guarantee would enable municipal bond issuers to cut the cost of financing everything from hospitals to schools to sports stadiums.

Buffett, who said he would charge more than existing financial guarantors, would present competition for Armonk, New York-based MBIA, as well as Ambac and FGIC Corp. of New York, as they try to convince Moody's, Fitch and S&P that they deserve to keep their top ratings. Suuuurrrree they do! Look here icon Ambac Valuationmodel 03december2007 Ver1.0%281%29 (878.65 kB 2007-12-24 15:41:20)

Fitch has given MBIA and Ambac less than six weeks to raise $1 billion each or face losing their AAA ratings. Moody's and S&P earlier month placed MBIA's ranking on negative outlook. MBIA on Dec. 10 said it will get $1 billion from private-equity firm Warburg Pincus LLC to bolster its capital and Ambac took out reinsurance on $29 billion of securities it guarantees. These companies with a mere $2 or $3 billion of capital are struggling to overpay for $1 billion in financing just to keep a rating they don't deserve. How in the world can compete against a $45 billion capitalized, conservative insurer with a sterling track record and reputation? These companies are done, don't even bother to stick a fork in. I told you they were done before, they are extra crispy now for the only new business for them to write is business that they shouldn't write. That Warburg Pincus investment in MBIA is money flushed down the toilet.

`Mass Destruction'

Bonds sold by state governments make up about 33 percent of the insurance premiums collected by MBIA, the biggest of the monolines, and 50 percent of revenue for No. 2 competitor Ambac.

The companies stumbled as they expanded beyond municipal securities into structured finance securities such as collateralized debt obligations, which package pools of bonds and loans and slice them into separate pieces.

Buffett, who has described derivatives as ``financial weapons of mass destruction,'' told the Journal he will focus on insuring municipal debt rather than CDOs.

New York-based monoline ACA Capital Holdings Inc. is struggling to stave off delinquency proceedings after the value of the CDOs it guaranteed plunged. S&P cut ACA's rating by 12 levels to CCC after the company posted a $1.04 billion third- quarter loss.

ACA Financial Guaranty Corp., a unit of ACA Capital, said this week it will seek approval from the Maryland Insurance Administration before pledging or assigning assets or paying dividends.

Smelling Opportunity

Buffett has profited in the past from turmoil in the insurance business. Berkshire's after-tax profit from insurance underwriting soared to $2.5 billion last year from $27 million in 2005 after providing insurance cover for coastal properties vulnerable to storms as some premiums quadrupled because of record U.S. hurricane losses.

``If Buffett smells an opportunity, his track record suggests there is one,'' said Georg Grodzki, head of credit research at London-based Legal & General Group Plc. ``Buffett seems to believe the market is viable and the bond insurer has a future.'' Yeah, I agree. It's the monoline derivative insurer that is DOA.

Separately, Berkshire Hathaway agreed to buy the reinsurance unit of ING Groep NV for about 300 million euros ($440 million), the biggest Dutch financial-services company said in a statement today.

Berkshire's Class A stock reached a record $151,650 a share on Dec. 11, having surged 25 percent this year. The stock had only three losing years since 1988.

Buffett Starts U.S. Municipal Bond Insurer, WSJ Says (Update6)

By Cecile Gutscher and Christine Richard

Dec. 28 (Bloomberg) -- Billionaire investor Warren Buffett is starting a bond insurer to take U.S. local-government business away from companies including MBIA Inc. and Ambac Financial Group Inc., the Wall Street Journal reported.

Berkshire Hathaway Assurance Corp. opens for business today in New York State, Buffett, chairman of Omaha, Nebraska-based Berkshire Hathaway Inc., said in an interview with the newspaper. David Neustadt, a spokesman for the New York State Insurance Department, said Berkshire had applied for a license to insure bonds. He wasn't able to say if the license has been granted.

Buffett, who said in October he was looking for investments to absorb $45 billion of cash, is challenging the bond insurers as they struggle to retain the AAA credit ratings that allow them to guarantee debt. The top rankings of MBIA, Ambac and other so-called monolines are under scrutiny amid concern they don't have enough capital for the $2.4 trillion of debt they guarantee.

``The monolines are hurting so now is a good time for Buffett to be getting into the market,'' said Matthew Maxwell, a London-based credit analyst at Calyon, the investment banking unit of Credit Agricole SA. ``Investors might feel more comfortable investing in bonds insured by Buffett than those backed by an insurer with the legacy of the credit crisis hanging over them.''

Buffett, 77, told the Journal he will also seek permission to operate in California, Puerto Rico, Texas, Illinois and Florida.

Calls before regular business hours to Berkshire spokeswoman Jackie Wilson and Buffett's assistant Debbie Bosanek, both in Omaha, weren't immediately returned.

Shares Drop

MBIA, down 70 percent this year, fell 59 cents to $21.68 in early trading on the New York Stock Exchange. Ambac, down 67 percent, dropped 67 cents to $28.48.

Berkshire Hathaway has AAA ratings from Fitch Ratings, Moody's Investors Service and Standard & Poor's and its guarantee would enable municipal bond issuers to cut the cost of financing everything from hospitals to schools to sports stadiums.

Buffett, who said he would charge more than existing financial guarantors, would present competition for Armonk, New York-based MBIA, as well as Ambac and FGIC Corp. of New York, as they try to convince Moody's, Fitch and S&P that they deserve to keep their top ratings.

Fitch has given MBIA and Ambac less than six weeks to raise $1 billion each or face losing their AAA ratings. Moody's and S&P earlier month placed MBIA's ranking on negative outlook. MBIA on Dec. 10 said it will get $1 billion from private-equity firm Warburg Pincus LLC to bolster its capital and Ambac took out reinsurance on $29 billion of securities it guarantees.

`Mass Destruction'

Bonds sold by state governments make up about 33 percent of the insurance premiums collected by MBIA, the biggest of the monolines, and 50 percent of revenue for No. 2 competitor Ambac.

The companies stumbled as they expanded beyond municipal securities into structured finance securities such as collateralized debt obligations, which package pools of bonds and loans and slice them into separate pieces.

Buffett, who has described derivatives as ``financial weapons of mass destruction,'' told the Journal he will focus on insuring municipal debt rather than CDOs.

New York-based monoline ACA Capital Holdings Inc. is struggling to stave off delinquency proceedings after the value of the CDOs it guaranteed plunged. S&P cut ACA's rating by 12 levels to CCC after the company posted a $1.04 billion third- quarter loss.

ACA Financial Guaranty Corp., a unit of ACA Capital, said this week it will seek approval from the Maryland Insurance Administration before pledging or assigning assets or paying dividends.

Smelling Opportunity

Buffett has profited in the past from turmoil in the insurance business. Berkshire's after-tax profit from insurance underwriting soared to $2.5 billion last year from $27 million in 2005 after providing insurance cover for coastal properties vulnerable to storms as some premiums quadrupled because of record U.S. hurricane losses.

``If Buffett smells an opportunity, his track record suggests there is one,'' said Georg Grodzki, head of credit research at London-based Legal & General Group Plc. ``Buffett seems to believe the market is viable and the bond insurer has a future.''

Separately, Berkshire Hathaway agreed to buy the reinsurance unit of ING Groep NV for about 300 million euros ($440 million), the biggest Dutch financial-services company said in a statement today.

Berkshire's Class A stock reached a record $151,650 a share on Dec. 11, having surged 25 percent this year. The stock had only three losing years since 1988.