Pershing Square project gives equal access to exposure detail in the insurance industry

By Lisa Kerner

Charlotte, N.C., Jan. 31 - Pershing Square Capital Management, LP introduced a new Open Source Research project that includes the release of version 1.0 of an Open Source Model containing extensive detail on the collateralized debt obligation and related exposures of the insurance operating subsidiaries of both MBIA Inc. and Ambac Financial Group Inc.

The goal of Open Source Research is to provide all market participants with equal access to primary source data, enabling them to construct their own view of losses without having to rely on rating agencies or the bond insurance industry.

Pershing announced its Open Source Research project in a Wednesday letter to state and federal regulatory authorities.

Users have initiated more than 2,000 downloads of the Open Source Model since its initial release on Wednesday, Pershing said in a news release.

The Open Source Model can be customized to allow users to estimate MBIA's and Ambac's losses using their own assumptions.

Pershing said the assumptions underlying the Open Source Model are available at http://www.yousendit.com/download/Mmd0UXVuQzMzeUxIRGc9PQ.

Users of the Open Source Model are encouraged to report their findings to the market "to further improve the process of evaluating the risk of loss in the bond insurance industry," Pershing said.

Pershing Square is a registered investment adviser focused on mid-cap and large-cap public investments.

Ambac, a New York-based holding company, has subsidiaries that provide financial guarantee products and related services.

Armonk, N.Y.-based MBIA, through its subsidiaries, provides financial guarantee insurance products, credit protection products and investment management services to public finance and structured finance issuers and investors and capital market participants.

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