Business Services Industry

Bond insurer business booming.(News)

Business Insurance, December, 2002 by Greenwald, Judy

Byline: JUDY GREENWALD Financial guarantee insurers are happily floating in the wake of what is turning out to be the biggest year yet for municipal bond issuance. And not only is municipal bond issuance up, but the percentage of insured bonds has increased as well, as more municipalities turn to financial guarantee insurers to help sell their bonds.

The need for infrastructure improvements, along with investors' desire for security in an uncertain economic environment, is driving both trends. At the same time, asset-backed securities and international business account for most of the financial guarantee insurers' new volume, and the days when muni bonds claimed a majority of their business are probably gone forever. Asset-backed securities, though,...

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