Ambac Postpones Launch Of Muni Bond Venture

Postponing the launch "was a difficult decision," said Davis Wallis, president and CEO of New York-based Ambac. "We will closely monitor the capital markets and will revisit this opportunity when the economic environment has stabilized."

Ambac simultaneously announced the related retirement of Everspan Chief Executive Douglas Renfield-Miller, who also serves as an executive vice president at Ambac and Ambac Assurance. Until Renfield-Miller's retirement takes effect Jan. 1, he will serve in a support and consulting role for Ambac, the company said.

Like others in its industry, Ambac was hit hard in the past two years by losses on its coverage of risky financial instruments such as mortgage-backed securities, and has been working to reduce its exposure to such debt instruments.

Ambac's stock traded above $10 per share in early September, but sank as low as 35 cents in early March.