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Stock impact report

Municipal Bond Defaults Will Be A Wake-Up Call For Bond Insurers [Forbes]

Ambac Financial Group, Inc. (AMBC) 
US:NASDAQ Investor Relations: ir.ambac.com/investor-relations
Company Research Source: Forbes
A man is confronted with a closed sign at the Douglas County Treasurer's office in Omaha, Neb.(AP... [+]Photo/Nati Harnik)ASSOCIATED PRESSThe coronavirus has had a devastating effect on the short-term finances of every state and municipal entity dependent on sales and payroll taxes for the revenues. The short-term effect, however, may well have very long-term implications for the finances of these entities. In turn, insurers of the bonds—those that guarantee interest and principle against default—are going to be asked to share the pain.The 2008 Financial Crisis had a devastating effect on the monoline bond insurance industry, which used to be dominated by names like Ambac Financial, MBIt was this segment of the business that brought down all the industry leaders. The actual business of insuring municipal bonds came through the crisis without immediate losses, so Assured Guaranty gained market share and prospered. But the industry shrunk dramatically and the seeds for future troubles s Show less Read more
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