Moodys has cut Ambac's rating to a level that triggers the GIGs to pay and hence causes a liquidity event.
The liquidity event can be prevented by the insurance commissioner who might yet come to the party (and I think should in the interest of his policy holders). But if the insurance commission does not come to the party Ambac will file bankruptcy.
The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.