It appears that the ratings agencies are back at it with a possible downgrade to AGO announced by Moody’s. This makes absolutely no sense when you look at the earnings, capital, and the moves the company has made to reduce risk in the portfolio. If you don’t like volatility AGO is not a good stock for you but we see substantial upside even after the huge run up, and we are still long the stock, and short puts on it. I think the CEO does a good job explaining the situation:
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.