(Bloomberg) — Municipal bond insurers are capturing the most market share since 2009 as Detroit's bankruptcy and Puerto Rico's struggles underscore the value of the coverage to investors in the $3.7 trillion market.
About 5.2% of the $248 billion in munis issued this year through September carried insurance, up from 3.2% in 2013 and the highest in five years, data compiled by Bloomberg show. Before the financial crisis cost insurers their top ratings amid losses on guarantees of subprime-mortgage debt, more than half the market had the backing.
The coverage has proven its worth in the past year as insured bonds from Detroit and Puerto Rico issuers retained their value while uninsured debt sank. In a sign of the revival, MBIA Inc. said yesterday that it hired muni analyst Tom Weyl from Barclays Plc.
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