Portway Capital Consider Additional Plays on Bond Insurers

July 21, 2008 - PRLog -- Portway Capital sources have speculated that more credit turmoil is yet to come as further problems emerge following rating downgrades by S&P and Moody’s Investors Service.
Global stock and credit markets have suffered in June as sentiment has worsened, with the tone darkening this week as fresh worries about the financial system have emerged.
Portway Capital is believed to have begun profiting from short-selling stock in both Ambac and MBIA as long ago as November 2007.
Reports emanating from Portway Financial appear to suggest that most of the year had seen a market contraction attributable to over-leverage and the French-based asset management firm’s strategic response to the deterioration of the bond insurer’s stock prices are not believed to have altered.
Moody's Investors Service last week handed down multi-notch downgrades to MBIA Inc and Ambac Financial Group both of whom were formerly rated triple A.
Portway Capital is said to have warned that the downgrades could set off a fresh round of asset write-downs and further turmoil.

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