The unwinding of Maiden Lane III, which had been created in 2008 to assume certain toxic assets held by American International Group, represents an ongoing reduction of government support for AIG, and reflects improving trends overall at the company, says Moody's Investors Service.
In its Weekly Credit Outlook, Moody's notes that the resent sale of remaining assets held in MLIII represents the end of the Federal Reserve Bank of New York's support to AIG. The only remaining government support for the company, says the ratings agency, is the U.S. Treasury's ownership of common stock.
Moody's says there has been growing investor appetite for AIG's debt and equity securities, and adds that the value of the MLIII assets was aided by a gradual recovery in the U.S. housing market and economy.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
