NEW YORK (Reuters) - American International Group (AIG.N) on Friday told investors that the structured credit market for residential mortgage securities, including subprime, does not appear to have rebounded.
“We don’t see any precise evidence to date that those markets have rebounded,” said Steve Bensinger, who it was announced yesterday will step aside as chief financial officer to assume a new post.
Late on Thursday, the world’s largest insurer reported a record loss of $7.8 billion, largely as a result of writing down assets that have links to subprime mortgages.
The company has said it expects much of the costly revaluation of these securities to “reverse” over time, as market conditions improve.
Reporting by Lilla Zuill, editing by Gerald E. McCormick