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Tuesday July 22, 2008
Market Close: Munis End Weaker
The municipal market was weaker by about four basis points today, as participants digested news that Moody’s Investors Service late yesterday put the ratings of triple-A bond insurers Financial Security Assurance Inc. and Assured Guaranty Corp. on review for possible downgrade.
“It’s just trying to sort out the FSA, Assured thing, and that’s adding to a tough environment as it is,” a trader in New Jersey said. “An environment of little liquidity, little interest, and this doesn’t help. It’s a little bit early, but the news about the insurers is still being digested. At first blush, it looks like the rating agencies are being a little more proactive than they’ve been over the past few years. I don’t want to say it’s overreaction, but they’re maybe just being a little more aggressive.”
To read the column in its entirety, go to The Bond Buyer web site.
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Jack.Herman-AT-sourcemedia-DOT-com
Posted by gsiegel [Today's BB Highlights] ( July 22, 2008 04:20 PM ) Permalink | Comments[0]