abk resurrects!!!!!

abk saves about $11.8 billion on CDO (11.8 = 16.4 - 2.6 - 2), and another $2.7 billion on non cdo abs. Wow, that is huge!!!! Today\'s market reaction on abk is relatively mild. I am not decided if I need to buy in. I have not trade abk for a long time. I only have some shares of abk left and out of dry power now. ABK and MBI are really too complex, I just wish there are insiders buying for abk, then I will follow. Lets watch.


NEW YORK--(BUSINESS WIRE)--Ambac Financial Group, Inc. (NYSE: ABK - News) (Ambac) announced today that it has commuted all of its remaining $16.4 billion of exposure to collateralized debt obligations of asset-backed securities (“CDOs of ABS”).

The commutation agreement with several CDO of ABS counterparties provides that AAC will pay in the aggregate (i) $2.6 billion in cash and (ii) $2.0 billion of newly issued surplus notes of AAC. The surplus notes have a scheduled maturity of June 7, 2020. Interest on the surplus notes is payable at the annual rate of 5.1%. All payments of principal and interest on the surplus notes will be subject to the prior approval of the Office of the Commissioner of Insurance of the State of Wisconsin.

Additionally, (i) certain non-CDO of ABS transactions with par or notional amounting to approximately $1.4 billion were commuted for cash payments of $96.5 million and (ii) it is expected that, subject to certain conditions, certain other non-CDO of ABS exposures with par amounting to a maximum of approximately $1.5 billion will be commuted within the next twelve months for a maximum amount of approximately $115 million of cash plus $60 million of surplus notes of AAC.

Further information about topics covered in this press release can be found in the Form 8-K to be filed by Ambac at www.sec.gov or on Ambac’s web site at www.ambac.com.