Smaller Bond Insurers Cleaining Up on Muni Business

With a MBIA and Ambac in death spirals over their involvement in mortgage backed securities and other similar instruments, former bit players like Financial Security Assurance and Assured Guaranty Ltd, which never drank that Koolaid, have seen their market position in the municipal bond insurance market soar.

The consequences I've predicted with the ability of municipalities to raise money may be milder than I had anticipated.