Standard and Poors and Moodys have declared that they now trust MBIA, the battered guarantor. This confidence provides real bank balance sheet relief but hopefully a psychological boost to the fixed income and stock markets. But an interesting article in Bloomberg points to what the opinion of the debt investors is regarding MBIA value based on the bid and offer. In short, based on where comparable problem company debt is trading, the market believes it is junk.
Bernanke speaks today so the pounders and the lifters will be slapping at the big ball.
