Financial Times FT.com

Bond insurers feel the chill from credit turmoil fallout

By Saskia Scholtes

Published: September 11 2007 21:11 | Last updated: September 11 2007 21:11

As the effects of the US subprime mortgage crisis have rippled out into the broader credit markets, bond insurers – an important but normally staid group of companies – have increasingly fallen victims to the turbulence.

These companies have seen their share prices tumble and the cost of protecting their debt against default spike higher as investors have punished all industries with exposure to the stricken mortgage market.

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