Ongoing negative net interest spread in the ALM business, a portion of which is included in the $38 million net loss on financial instruments at fair value and foreign exchange, totaled approximately $22 million in the quarter.
The Conduit segment repurchased $118 million par amount of medium-term notes at discounts during the third quarter, resulting in net gains on the extinguishment of debt that totaled $16 million.
As of September 30, 2012, the ALM business had cash and short-term investments of $284 million, of which $97 million was not pledged directly as collateral. An additional $298 million of cash as of September 30, 2012 was pledged to a swap counterparty. Of this amount, $215 million is netted within “Derivative liabilities,” $17 million is netted within “Other liabilities” and $66 million is included in “Other assets” on the Company’s consolidated balance sheet.
Consent SolicitationThe Company announced today that it launched a consent solicitation pursuant to which it is seeking the consent of its senior noteholders to amend the indentures pursuant to which the senior notes were issued to substitute National for MBIA Insurance Corporation in the definition of “Restricted Subsidiary” and “Principal Subsidiaries” in the respective indentures. The Consent Solicitation Statement is available on the Company’s website at http://docs.mbia.com. Conference Call The Company will host a webcast and conference call for investors tomorrow, Thursday, November 8, 2012 at 8:00 AM (EST) to discuss its third quarter financial results and other matters relating to the Company. The webcast and conference call will consist of brief remarks followed by a question and answer session. The dial-in number for the call is (877) 694-4769 in the U.S. and (404) 665-9935 from outside the U.S. The conference call code is 48056925. A live webcast of the conference call will also be accessible on www.mbia.com. A replay of the call will be available approximately two hours after the completion of the call on November 8 until 11:59 p.m. on November 22 by dialing (800) 585-8367 in the U.S. or (404) 537-3406 from outside the U.S. The replay call code is also 48056925. In addition, a recording of the call will be available on the Company's website approximately two hours after the completion of the call.