NEW YORK Bond insurer ACA Capital Holdings Inc
ACA.N is likely to go bankrupt, Pershing Square Capital's
William Ackman said on Wednesday.
ACA Capital has written protection on some $68 billion of
repackaged debt known as collateralized debt obligations. The
market prices of those assets have suffered recently in part
because of concern about the subprime mortgage crisis. ACA
posted a $1 billion loss in the third quarter.
Pershing Square has had a short position on bond insurers
for years, in a bet the share prices of bond insurers will
(Reporting by Michael Flaherty, writing by Dan Wilchins,
editing by Maureen Bavdek)