Moody’s: Municipal-Only Bond Insurers Might Get AAA
Last Update: 7/31/2008 10:31:20 AM
By Lavonne Kuykendall
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Bond insurers that cover only municipal and public purpose
bonds might be more likely to win a top credit rating than insurers that dabble
in securities backed by consumer and other [...]
CHICAGO (Dow Jones)–Subprime mortgages were the first sore spot for bond
insurers as falling housing prices hit borrowers hard. But in the first quarter,
home-equity lines of credit have become the new hot spot.
Third-largest bond insurer Financial Security Assurance Ltd. on Wednesday became
the latest to report that its loss projections for those loans rose in the
quarter.
FSA increased [...]
As mortgages included in some supposedly investment-grade securities hit default
rates over 80%, bond insurers are looking for signs of fraud in individual loans
and even entire packages of mortgages they have insured.
Chances are they will find lots of it, some experts say, which could lead bond
insurers to demand that issuers repurchase the loans. This would transfer [...]
The bond-insurer units of FGIC Corp. and Security Capital Assurance Ltd. (SCA)
are stepping up efforts to help debt-ridden Jefferson County, Ala., out of its
fiscal mess.
The county, which includes Birmingham, has been allowed to delay a $53 million
sewer bond debt payment so negotiations can continue on a plan to avoid what
would be the nation’s largest municipal [...]
FGIC and XLCA Continue to Work with Jefferson County to Solve Debt Crisis
NEW YORK, April 10, 2008 /PRNewswire-FirstCall via COMTEX/ — Financial Guaranty
Insurance Company (”FGIC”), a wholly owned subsidiary of FGIC Corporation, and XL
Capital Assurance Inc. (”XLCA”), a wholly owned subsidiary of Security Capital
Assurance Ltd (SCA) (collectively “the bond insurers”) today announced that they
continue to [...]
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