MBIA (MBI) Stock Analysis & Winston Score

MBIA Inc. is a financial guaranty insurance company. It promises to pay back investors if bonds they own stop making payments. The main customers are governments, municipalities, and other public entities that issue bonds to raise money for things like roads, schools, and utilities. MBIA makes money by charging fees and premiums to bond issuers in exchange for wrapping their debt with an insurance guarantee. The company operates primarily in the United States and has a much smaller international business. MBIA was once a dominant player in bond insurance, but it suffered severe losses during the 2008 financial crisis after guaranteeing risky mortgage-backed securities. Today the company is in a long runoff phase, meaning it is no longer writing much new business and is focused on managing and paying down its existing obligations. The biggest risk the company faces is that losses on its remaining insured portfolio exceed the reserves it has set aside to cover them.