MBIA Inc. followed the trend set by its rivals in reporting a third-quarter loss due to cutting the value of its credit derivatives portfolio.
The Armonk financial guarantor and provider of specialized financial services swung to a third-quarter net loss from a year-earlier profit as it said the market value of its credit derivatives dropped $352.4 million, or $1.80 a share, in the third quarter.
“Spreads widened significantly across the market in the third quarter and caused our insured credit derivatives portfolio to generate a large ”˜mark-to-market”™ loss, which we do not believe accurately reflects the economics of our business,” Gary Dunton, MBIA”™s chairman and chief executive, said in a press release.
The company”™s net loss was $36.6 million, or 29 cents a share, compared with net income of $217.9 million, or $1.59 a share, in the year-earlier quarter.
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