August 29

How Will the Insurance Regulators React to the Subprime Mess?

Based upon historical behavior, the NAIC and other insurance regulators will react like generals fighting the last war. First, they will wait to see if and how the overall repricing of risk impacts insurers.  Amazingly, reductions in earnings and risk capital are not the biggest issue here.  Potential insolvencies or rehabilitations are.  Depending upon the ultimate.

July 29

What’s Next for the Battered Financial Markets? Follow the Money.

If you owned something and wanted to determine its current value, wouldn’t you look to see where it last traded? For many financial assets, like most of those held by insurers, you go to the latest quotes from listed markets or from broker/dealers involved in the market.  But, what happens when most of those trades.

July 18

Could Your A Rated Subprime Mortgage Tranche be ‘Impaired’?

Archive for July, 2007 What’s Next for the Battered Financial Markets? Follow the Money. Sunday, July 29th, 2007 If you owned something and wanted to determine its current value, wouldn’t you look to see where it last traded? For many financial assets, like most of those held by insurers, you go to the latest quotes.

July 7

S&P Gets a Wake Up Call, as the Conflict of Interest ‘Chickens’ Come Home to Roost

Today Standard & Poor’s said it placed 612 classes of residential mortgage-backed securities backed by subprime collateral on CreditWatch with negative implications.  Although this affected only about 2% of the total outstanding RMBS rated by S&P from the fourth quarter of 2005 to the fourth quarter of 2006, it still is a significant issue.  S&P says that poor.