Bloomberg - "Ambac's Insurance Unit Cut to AA From AAA by Fitch Ratings" (1-19-08)

"Ambac Financial Group Inc., the second-largest bond insurer, was stripped of its AAA credit rating by Fitch Ratings after the company abandoned plans to raise new equity. Ambac Assurance Corp. was lowered two levels to AA and may be reduced further, New York-based Fitch said yesterday in a statement. The downgrade 'reflects the significant uncertainty with respect to the company's franchise, business model and strategic direction,' Fitch said."

Bloomberg - "Treasuries Rally as Bush Plan Fails to Ease Recession Concern" (1-19-08)

"Treasuries rose for a fifth straight week, pushing two-year note yields to the lowest since 2004, as President George W. Bush's plan to spur consumer spending failed to ease concern that the economy is falling into recession. Notes maturing in two years yielded 1.90 percentage points below the Federal Reserve's target lending rate, the biggest difference since 1981, as traders bet that the central bank will reduce borrowing costs by at least a half-percentage point. Existing-home sales fell in December to the lowest since records began in 1999, the National Association of Realtors is forecast by economists to report next week."