Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Assured Guaranty
So what: S&P downgraded Assured Guaranty from AAA to AA on higher potential losses because of mortgage-backed securities. Later in the day, the company announced it would beat analysts' estimates of earnings in the quarter.
Now what: This is a double-edged sword for investors as the higher guidance is great in the short-term but a lower rating hurts the company's prospects going forward. Ambac Financial
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