Ambac vs. the SellSide

The implosion in Ambac Financial Group (ABK-NYSE) has the shorts celebrating and the SellSide scrambling to add value to the pertinent investment case. Analysts were caught flatfooted for the most part, and Morgan Stanley's report last week comparing the mark-to market losses between Merrill and the assorted financial guarantors has the company fuming; they are firing back in a press release today, trying to set the record straight.

We certainly understand the heightened concerns summarized in the analyst's report. Most all participants in the financial markets, including Ambac have a heightened concern over the ultimate outcome of the U.S. mortgage market. However, we are confident in the quality of our internal credit ratings process. We have been very transparent to the market and our investors by disclosing significant detail on our direct mortgage and CDO exposure in our various public disclosures. We have a rigorous and current review and rating process in place and we will react quickly as projected collateral performance changes. Ambac

Ambac counterpoints many of Morgan Stanley's assumptions in the report here on their website
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