With the major insurers of bond offerings being down graded by the three major rating agencies, new bond issues are being offered without insurance coverage. Of course these bond insurers still have trillions of dollars worth of bonds insured but no incoming revenue. How far from from bankruptcy are they and what effect will this have on the outstanding bond market?
No income revenue? Wrong, like any other insurers, they place the premium received in some investments.
No income revenue? Wrong, like any other insurers, they place the premium received in some investments ------------------------------------------------------------------------ The premium placed in investments is required for reserves. They have no continuing income from insuring new issues.