Welcome
Securities Law News

Muni Default Fears Spur Biggest Use of Bond Insurance Since 2009

Jan. 4, 2021, 6:46 PM

The coronavirus pandemic has driven the use of municipal-bond insurance to its highest level in more than a decade as borrowers seek to reassure investors concerned about a rise in defaults.

More than $34 billion of state and local government bonds sold in 2020 were insured, accounting for about 7.5% of new issues, according to data compiled by Bloomberg. That is the highest volume and share of sales since 2009.

The uptick marks a small if notable resurgence for a business that shriveled after the credit crisis set off by the housing market collapse, when the major insurers had their...

To read the full article log in. To learn more about a subscription click here.