RAM Holdings Ltd.'s share price rebounded dramatically yesterday after the company moved to address concerns over its poor second-quarter results.

Having reported a 25 percent loss in profits, down from $12.2 million in 2006 to $9.1m this year, the company's share price fell 45 percent on Monday.

But yesterday the bond insurer and reinsurer, said concerns were overdone about the availability of its $50 million "soft capital" facility.

The markets responded warmly and shares regained much of what they had lost the day before, shooting up 32 percent to close on $8.48.

Vernon Endo, RAM's president and chief executive officer, said: "From our perspective, the recent precipitous decline in the price of our stock is inconsistent with our view of the fundamental health and capital position of our company, and seems to us to be driven more by general market credit concerns rather than specific analysis.

"We are acutely aware that markets can be volatile and we anticipate that the price of our stock will ultimately reflect the performance of RAM and our in-force portfolio."

Talking about RAM's $50m "soft capital" facility, Mr. Endo said: "Contrary to a story that was issued in the press, our subsidiary's $50m soft capital facility remains available to us and we will continue to receive capital credit from the rating agencies for that facility.

"We are not in the process of trying to raise capital and our capital remains more than adequate by rating agency standards." So-called "soft capital" facilities are used by bond insurers and reinsurers to support their credit ratings. These facilities sell securities monthly in the commercial paper market, permitting the issuer to sell or put preference shares to holders of the securities in the event the insurer needs additional capital. The facility does this by liquidating a portfolio of top-rated paper, and using proceeds to pay claims.

Commenting on the additional mortgage exposure information, Mr. Endo said: "We are in ongoing contact with our primary customers to discuss any exposures they have ceded to us that have, or may have, performance issues.

"In addition, we regularly review the rating agency downgrade announcements. We have received no information since March 31, 2007 that would cause us to consider changing our RAM Re ratings as disclosed in our mortgage exposure summary posted to our web-site with the exception of the downgrading of two HELOC transaction totaling $3.5m to below investment grade.

"In addition, our primary customers are required under our treaties to retain significant exposure to each credit they cede to us, and as can be seen in our new mortgage and CDO exposure listings, we have generally been ceded only small portions of each credit. We expect to continue to update and expand our exposure information by posting supplemental information to our website, including more detailed information on individual transactions with the permission of our customers."