The credit markets must be getting tired of watching the unthinkable happen. But when Fitch Ratings finally downgraded monoline insurer Ambac on January 18 it sent shock waves through the market that were reminiscent of the worst of the sub-prime crisis last summer. “The monolines now represent the biggest threat to the credit market – this will be sub-prime all over again,” warns an investment banker.
The downgrade of a monoline has always been seen as an Armageddon prospect in the credit market – and one that many participants believed would never happen (see Monolines: Beyond protection, Euromoney, December 2007).
Thanks for your interest in Euromoney!
To unlock this article:
