ACA Capital Holdings, Inc. (ACAH.PK)

ACA Capital Holdings, Inc., a holding company, provides financial guaranty insurance products to participants in the global credit derivative, structured finance capital, and municipal finance capital markets. It also provides asset management services to specific segments of the structured finance capital markets. The company selects, structures, and sells credit protection principally on highly rated liabilities of structured financings, including layers of risk of single tranche transactions and fully distributed CDOs, MBS and ABS transactions. It also provides financial guaranty insurance focusing on underserved segments of the public finance market and specific credits. The company's insured portfolio of bonds include higher education, health care revenue, tax-backed (non-general obligation), long-term care, general obligation, transportation revenue, housing revenue, not-for-profit, municipal utility revenue, investor-owned utilities, and other public bonds. In addition, it also serves as an asset manager of collateralized debt obligations for the benefit of the third party investors. The company was founded in 1997. It was formerly known as American Capital Access Holdings, Ltd. and changed its name to ACA Capital Holdings Inc. in 2004. The company is headquartered in New York, New York.

For the nine months ended 30 September 2006, ACA Capital Holdings, Inc.'s revenues increased 41% to $337.8M. Net income increased 72% to $42.3M. Revenues reflect an increase in net investment income, and increase in net insured credit swap revenue, higher fee income and higher other net credit swap. Net income also reflects decrease in loss and loss adjustment expenses and lower policy acquisition costs.