Shares of Ambac Financial Group Inc. jumped 65.79% to $1.26 yesterday in its first trading since announcing Wednesday night that bond insurer subsidiary Ambac Assurance Corp. paid $1 billion to financial counterparties to commute four transactions representing $3.5 billion of notionalized outstanding collateralized-debt obligation exposure.

As a result of the CDO commutations, Ambac expects to "record positive adjustments to its aggregate mark-to-market and impairment reserves" and said that Ambac Assurance's rating agency capital position should improve.

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