Uh Oh, look out below. ACA Capital Holdings "provides financial guaranty insurance products to participants in the global credit derivative, structured finance capital, and municipal finance capital markets." In other words, they provide "insurance" to companies that own big chunks of what Atrios affectionately calls "The Big $hitpile". Their share price plunged 23% today to a whopping $0.55. This is especially hard, given that their share price was over $14 just six months ago.
This is a really big deal because the firms that have been holding onto worthless commercial paper have been able to fall back on ACA to cover their asses. What happens when ACA goes away. Something tells me we are going to find out later this week...
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