Warren Buffett, Bond Insurer
I'm fascinated by the news that Warren Buffett is starting up a new bond insurer. On the one hand, it makes perfect sense: he's an expert in insurance, he already has a triple-A credit rating, and his competitors in the market are all struggling.
But on the other hand, this is a declining market. This time last week I posted a blog entry headlined "Munis Back Away From Ratings-Agency Domination," which celebrated the fact that city and state issuers were increasingly wondering whether bond insurance was worth their while.
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