I don't know ... SGI NPO/CPR ratios (6.6x i think) are LOWER THAN MBIA's National which was granted to write NEW BUSINESS last year, and has AA- credit rating.
SCAI sub is still high (43x) and some restrictions on that unit anyways by design. As it is the original bad bank/hybrid structure kind of anyways
Will Syncora (or SGI sub) go get Credit Rating + tap credit markets?
Why did SGI get permission to raise debt limit in shell to $250m?? To raise debt for what... raise new cheaper money to re-fi/payout existing surps/pref bs that are on the SGI sub. [ note Pref As on SHL Holdco]
SGI could use debt to do a number of things, just for pre-caution... unclear
And Regulators allow + approve this, kuddos i like
Regulators seem to be comfortable now that they approved 3rd ammendment to MTA II.
A: UNKNOWN, really question is what is the Management's GRAND PLAN for NOLs? Partner/get debt-equity + make some real sizable deals to generate value of $3B NOLs? -- one of the usual formulas
Incrementally we see management has started the little like $50m VC/Alt investment fund arm where they started doing tiny deals, ok well thats not gonna do it much
Not sure on NOL rule... other than 5% limit in bylaws ... 10% limit has to be approved by NYDFS anyways
Is Brigade Capital truly just Pref A focused? Do they own any Surplus Notes or Pref Bs?
Could they be in commons?.... Could they be the Sugar Daddy for tapping those NOLs... unclear.
It would be lame if they only care about the Pref A paper.