The bond insurance industry was devastated in the financial crisis of 2008-2009. The failure of almost all of the bond insurers was not a result of the municipal bonds they insured but was instead largely tied to the non-municipal exposures such as asset-backed securities (ABS) and collateralized debt obligations (CDOs).
In this article, we examine why the insurers decided to insure these riskier assets and how non-municipal exposures changed bond insurers for the better.
municipalbonds.com
by Joshua Hudson
Sep 19, 2018