MacBank makes US bond insurance play
Macquarie Bank has stepped into an opening in the US bond insurance market in the wake of the subprime crisis.
New York Insurance Superintendent Eric Dinallo has confirmed he is considering Macquarie’s application to establish a municipal and infrastructure bond insurer with $US2.5 billion ($2.6 billion) in capital.
The move comes after ratings agency Standard & Poor’s downgraded bond insurers Ambac Financial Group and MBIA from AAA to AA, citing continuing problems in the US residential mortgage sector.
Macquarie’s reported interest in bond insurance follows billionaire investor Warren Buffett’s entry into the market late last year with New York’s authorisation of his Berkshire Hathaway Assurance Corporation.
New York Insurance Superintendent Eric Dinallo has confirmed he is considering Macquarie’s application to establish a municipal and infrastructure bond insurer with $US2.5 billion ($2.6 billion) in capital.
The move comes after ratings agency Standard & Poor’s downgraded bond insurers Ambac Financial Group and MBIA from AAA to AA, citing continuing problems in the US residential mortgage sector.
Macquarie’s reported interest in bond insurance follows billionaire investor Warren Buffett’s entry into the market late last year with New York’s authorisation of his Berkshire Hathaway Assurance Corporation.