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Article: Secondary market offers growing insurance business.(Credit Enhancement)
- Article from:
- The Bond Buyer
- Article date:
- September 5, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. 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)
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Increased demand for bond insurance in the secondary market is the result of lower premium prices, fewer new bond issues and investor anxiety about the credit quality of some issues, according to municipal portfolio managers, bond insurance executives and industry analysts.
The relative slowdown in the primary market that began in early 1994 has shifted the focus to the secondary market on which bond insurers are now relying heavily to generate profits.
Fierce competition among the monolines for business on higher-quality issues, however, has forced down premiums and created opportunities for bond fund mangers to upgrade their portfolios at bargain basement ...