Banking, finance, and taxes

Moody's (MCO) Egg-Heads Say Ambac (ABK) And MBIA (MBI) Are Junk

Moody’s (MCO) primary ratings unit gives Ambac (ABK) and MBIA (MBI) "Aaa" ratings. Those ratings were in trouble, but when the two companies raised capital, they kept their Good Housekeeping seals.

It turns out that Moody’s has a small unit that looks at the credit markets much differently than most of the company’s other analysts do. The little skunk-works is called Moody’s Analytics.

According to Bloomberg, "The official ratings of these companies say the insurers are in great shape; the alternative ratings say they’re in dire danger of defaulting on their debts." That second set of ratings come from within the halls of Moody’s itself.

It will be fascinating to see whether the old line analysts at the ratings agency or the Analystics group. wins this debate. The "official"l Moody’s position could be very, very wrong.

Douglas A. McIntyre

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

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