MBIA posts huge loss on credit derivatives

By Dan Wilchins

NEW YORK (Reuters) - MBIA Inc (MBI.N: Quote, Profile, Research), the world's largest bond insurer, posted a quarterly loss of $2.4 billion on Monday as it took charges on billions of dollars of exposure to bonds linked to subprime mortgages.

But MBIA's beaten-down shares rose more than 4 percent as adjusted results beat expectations and the company said new business volumes appear to be rising from the first quarter.