Armonk, N.Y.-based bond insurer MBIA said it expects to report a $737 million loss in the fourth quarter of 2007 as the effects of the subprime mortgage market collapse continue.
Management said the losses would consist of $614 million in case loss activity and $123 million in unallocated loss reserve activity.
The $614 million case loss is tied to securitizations of prime home equity lines of credit and prime closed-end second lien mortgages (mortgage bonds that cannot be repaid before maturity without permission of the bondholders). However, the ultimate loss could differ from the estimate, the company said.
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