Ambac debt protection costs rise after stock news

NEW YORK (Reuters) - The cost to insure the debt of Ambac Financial Group Inc's bond insurance arm rose after the company said it will sell at least $1.5 billion in stock and equity-linked securities.

Credit default swaps on Ambac Assurance Corp rose to around 510 basis points, or $510,000 per year for five years to insure $10 million in debt, from around 470 basis points before the stock plans were announced, said an analyst.

(Reporting by Karen Brettell; Editing by Jonathan Oatis)