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Market Update : 
AIG Raises $11.9 Billion, Bond Insurers Drop
Author: 123jump.com Staff
123jump.com
Last Update: 4:53 PM EDT May 13 2008


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MBIA and Ambac fell after the bond rating agency Moodys raised concerns on the capital adequacy at the insurance companies. MBIA, only a day ago asserted at the time of earnings release that it does not need additional capital and has a significantly higher book value than GAPP accounting would suggest. Moodys suggested that fallng home values and continued decline in loans values in the secondary market may force the insurance companies to raise more capital.

 
Commodities, Metals, and Currencies

Crude oil increased $1.64 to close at $125.87 a barrel for a front month contract, natural gas increased 11 cents to $11.41 per mBtu, and gasoline futures increased 3.68 cents to close at 320.10 cents per gallon.

Gold decreased $15.30 in New York trading to close at $869.60 per ounce, silver closed down 39 cents to $16.83 per ounce, and copper for front month delivery decreased 1.80 cents to $3.73 per pound.

Wheat futures decreased 9.75 cent in Chicago trading and closed at $7.95 per bushel. Sugar decreased 49 cent to $11.16 per pound. Soybean future closed up 11.70 cents to $13.79 a bushel.

Dollar edged higher and traded near record low against euro to $1.5476 and edged higher against yen to 104.77.

Yields on U.S. bonds increased to 3.90% with 10 years of maturities and increased to 4.62% with 30-year of maturities.
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