The end of the monoline?
Fears that monoline bond insurers would lose their triple-A ratings rocked global capital markets in February. As bankers, regulators and industry chiefs gawp at the cracks in the insurers' foundations, Daniel Andrews investigates where it all went wrong for the protection business
The fear factor is very high and does not look like receding," says one managing director at a rating agency in New York. "Go back to the summer and people thought they had a handle on the implications of subprime only for conduits and structured investment vehicles to get into trouble. Now there is a question mark hanging over bond and mortgage insurers. The foundations of protection are rocking."
For those asleep at their Bloomberg screens for the past five months, monoline insurers guarantee
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