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What: Shares of Genworth Financial
So what: Sandler O’Neill + Partners named five life insurers with major U.S. debt exposure, including Genworth, which could see lower book value as the value of its Treasury holdings decline. Others named in the report included Aflac
Now what: It's far too early to know the implications of the downgrade on book values, but Sandler said declines could come, and if they do, the corresponding stocks would take a hit. Genworth seems to be falling in anticipation of exactly that. Is the haircut deserved, or are you buying at these levels? Weigh in using the comments box below.
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Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.
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