bond insurance News

Insurers Balk at Study Questioning Value of Municipal Bond Insurance

Around noon one Wednesday in July, two school districts from California’s Central Valley auctioned off their bonds to Wall Street underwriters. Both had the same credit rating. The deals were of similar size. They were being issued for the same …

Insurer MBIA Sues Banks Over ‘Financial Tragedy’ of Defaulted Puerto Rico Bonds

Bond insurance company MBIA Inc. sued several financial institutions on Thursday over their role in underwriting billions of dollars of Puerto Rico bonds that eventually went into default. The lawsuit filed in superior court in San Juan claimed the banks …

XL Catlin Offers Political Risk, Credit & Bond Insurance in Canada; Zurich’s Azzopardi Named Lead U/W

XL Catlin has opened its first Political Risk, Credit and Bond (PRCB) insurance practice in Canada and has appointed Marvin Azzopardi as senior underwriter. Based in Toronto, Azzopardi, will join XL Catlin on June 1 and will report to Richard …

Va. City Could Face Foreclosure on City Hall Over Bond Debt, Insurer Says

An insurance company says Buena Vista, Virginia, could face foreclosure on its city hall and police department if a bond debt isn’t paid. The Roanoke Times reports that ACA Financial Guaranty Corp. sent a letter on Tuesday to City Council …

Bankrupt Detroit, Bond Insurer Reach Agreement

Detroit and Syncora Guarantee Inc. reached an agreement in their dispute over claims in the city’s $7 billion debt-reduction program that the two sides said may “profoundly alter” the city’s bankruptcy-exit plan. Detroit and Syncora today requested the postponement of …

Bond Insurer Syncora Fighting City’s Plans in Detroit Bankruptcy

Bond insurer Syncora Guarantee Inc has emerged as Detroit, Mich.’s chief nemesis in the city’s historic bankruptcy case and is fighting as if its financial life depends on a decent recovery on its $400 million exposure to the city. Since …

Municipal Bond Insurance Sales Expected to Rise With Interest Rates

Demand for municipal bond insurance is poised to increase as rising interest rates reduce investor appetite for riskier state and local debt, according to Janney Montgomery Scott. Bond insurance accounted for 4.4 percent of new muni issuance last quarter, up …

Ironshore Adds Surety Capacity Through Lexon, Boston Indemnity Group

Ironshore Inc. and Lexon Surety Group are broadening their strategic alliance by providing additional capacity for Boston Indemnity Group (BIG), a subsidiary of Lexon and a privately-held insurance holding company specializing in the business of surety bonds. Ironshore will provide …

In R.I., Debate Continues Over 38 Studios Bonds as Insurers Await

This week, Rhode Island lawmakers are negotiating the final details of the state’s $8.2 billion budget. One controversial part of the discussion has been what Rhode Island should do with the state’s failed investment in 38 Studios, a video game …

R.I. GOP Chair: Default on 38 Studios Bonds, Insurers Will Pay Bondholders

Rhode Island’s Republican Party chairman has joined the call for the state to default on the money it owes for its failed investment in former Red Sox pitcher Curt Schilling’s bankrupt video game company. Mark Smiley said Tuesday that taxpayers …