Whitney Tilson, investor, on bond insurer woes

Whitney Tilson, founder of T2Partners and noted value investor, predict further troubles - and ratings cuts - for bond insurers Ambac and MBIA and retains a short position in both stocks. He says both MBIA and Ambac successfully were able to raise capital, strengthen their balance sheets. He remains short because he expects bad results for their first quarters, as the underlying default rates of mortgages in the United States continue to spike up. It will be hard for them to raise more capital in a second round of "desperation finance". Mr Tilson writes a regular column for the Financial Times.