Financial Security Assurance Holdings Ltd., a New York-based bond insurer, has reported a $422 million net loss in the first quarter that reflects "unrealized negative fair-value adjustments and provisions" for home equity lines of credit and closed-end second-lien mortgage-backed securities. The company said it made after-tax, unrealized, negative fair-value adjustments of $317.9 million "for credit derivatives in the insured portfolio and after-tax loss expense of $195.3 million related to second-lien residential mortgage-backed securities." The credit derivatives in the insured portfolio "consist mainly of credit default swaps on pooled corporate risk," FSA said. The company can be found online at http://www.fsa.com.
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