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Bond insurers could withstand downgrades of reinsurers. (News Briefs).(Brief Article)

Government Finance Review

| October 01, 2002 | COPYRIGHT 2002 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

According to a recent report by Standard & Poor's, the four major bond insurers would be able to pay claims in the event of an economic depression resulting in a one-category downgrade of their reinsurers. The catalyst for the report was the March adjustment of the outlooks for monoline reinsurers to negative from stable. "We're assuring the investor that in a worst-case economic environment, all the bond insurers will be able to meet their claims at a certain level," said David Veno, the author of the study. The report concludes ...

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