NEW YORK, May 28 (Reuters) - Shares of bond insurer Ambac Financial Group Inc ABK.N fell sharply to a record low on Wednesday, after it released data showing it took a large write-down on investments last month.
Ambac said it marked down the value of a derivatives portfolio linked to mortgage securities by $228 million in April. Net investment income was $42.2 million, offset by a $53.4 million decline in the market value of other investments.
Net earned premiums were $56.4 million for the month.
Ambac’s shares fell as low as $2.88 in intraday trading, before paring some of their losses to close 9 percent lower, or down 29 cents, at $2.94 on the New York Stock Exchange.
The bond insurance sector was hit hard by its expansion into guaranteeing repackaged subprime mortgages and other risky securities.
Ambac’s stock has fallen dramatically since a year ago, when the shares were trading around $92.
(Reporting by Lilla Zuill; Editing by Tim Dobbyn)
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