Assured Guaranty EPS May Fall Over 60 Percent on Detroit Bankruptcy

UBS research team has trimmed the second-quarter operating EPS estimates for Assured Guaranty Ltd. (NYSE:AGO) from $0.67 to $0.25 for its exposure to Detroit. That is a whopping 60 percent cut for the insurance giant. Brian Meredith and Marie Lunackova of UBS Investment Research in their report, however, maintained their buy rating on Assured Guaranty. Assured Guaranty is a bond insurer which covers debt obligations, including variable-interest entities, which enables firms to keep certain assets off of their balance sheets. Detroit losses an earnings, not a balance sheet event UBS research team estimates per-share loss of Assured Guaranty Ltd. (NYSE:AGO) at…