Basically NM monetized the insurance they had on the failed charters and got a lump sum (plus some continuing coverage), and the insurer will be exiting the business. Not being able to get coverage going forward will eventually matter, but at this point in the cycle it is a moot point. Why? Simply put, they no longer have anything ov value to insure. Look at where day rates are. They are low enough that a default would simply have NM recharter at a similar rate. Day rates cannot drop much because owners wills crap and park ships. If they could get long term charters at $40k/day, I would be worried. But when a 1 year deal for a cape is mid teens or lower, there isn't really much of value to bother insuring. When this will matter is when rates bounce in a serious way. But that could be a while. I was trying to figure out that continuing coverage part. From what I recall it is slightlydifferent from the charter default insurance that NM had prior. I noticed that thenumber of Capes with healthy charters was down to 5, so I'm guessing a couple more had chartersdefault.
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