Volume Spike Investor

We have seen a severe downward volume spike in trading in the shares of MBIA Inc. (NYSE: MBI) and AMBAC Financial Group Inc. (NYSE: ABK).

Today’s action can be chalked up to a Moody’s “review” that may sweep away the bond insurers’ “Aaa” ratings to levels more similar to “Aa” rated.

Ambac Financial Group, Inc. (NYSE: ABK) has seen almost 18 million shares with now a 16% drop to $2.51 today.  That’s a new 52-week low as the 52-week range was $2.88 to $89.33.  Average days trading volume: about 13 million shares.

MBIA Inc. (NYSE: MBI) has seen almost 18 million shares trade with now a 13% loss to $5.81.  That is also a 52-week low as the 52-week range had been $6.58 to $68.98.  Average days trading volume: about 7 million shares.

Translation: This in theory puts these entities back into the “at-risk” category, even after recent capital raise attempts.

Jon Ogg
June 4, 2008