Financial Times FT.com

Monolines

New danger appears on the monoline horizon

By Paul J Davies

Published: February 6 2008 23:31 | Last updated: February 6 2008 23:31

As the bond insurers, or monolines, have seen their seemingly rock-solid AAA ratings begin to buckle, worries have grown about what downgrades for these companies might mean for banks.

Now, one particular type of trade done between banks and monolines is being seen as an extra hidden danger.

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