Article: Development boom in Latin America could benefit U.S. bond insurers; Despite U.S. economic trouble, insurers still see opportunity in region.(Spotlight: Emerging Markets: Latin America)(AMBAC Financial Group Inc.)

Byline: ROBERTO CENICEROS

Latin America's ongoing economic expansion and infrastructure development projects could provide a bright spot for U.S. financial guarantee insurers, although their credit troubles at home must first be settled, observers said.

The projects within Latin America provide opportunities for local insurers, pension funds and U.S. investors looking for cross-border investments, said Diana Adams, managing director for emerging markets and structured insurance in New York for Ambac Financial Group Inc.

Monoline bond insurers, in turn, could benefit from insuring those investments, observers said. However, bond insurers ...

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