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US bond insurance has uncertain future: S&P

25 January 2010

The US bond insurance market faces an uncertain future, while there are few prospects for a revival of the industry, Standard & Poor’s (S&P) has said in a new report.

Read more: bond insurance S&P Standard & Poor’s municipal bonds Assured Guaranty

The US bond insurance market faces an uncertain future, while there are few prospects for a revival of the industry, Standard & Poor’s (S&P) has said in a new report.

"Taking into account the recent market stress, the decline of the large well-established insurers, the potential for new entrants, and possible alternatives to bond insurance in the municipal market, we believe the prospects for a revival of this industry are modest," said Rodney Clark, credit analyst at S&P.

The US bond insurance market, which began as a relatively stable business insuring US municipal bonds against default, grew during the early 2000s as US bond insurers’ coverage...


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Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

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22%
$5bn-$6bn
11%
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22%
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