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Groups to ‘enter’ bond insurance

By Aline van Duyn and Stacy-Marie Ishmael in New York

Published: April 23 2008 13:33 | Last updated: April 23 2008 18:45

Two companies are considering opening new bond insurance firms – a large US bank and a large private equity firm – according to New York’s insurance industry regulator.

The potential for new entrants into the bond insurance sector, through which triple-A rated insurers are paid to guarantee bonds issued by borrowers such as municipalities, comes amid continued uncertainty around the biggest bond insurers, Ambac and MBIA.

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