NEW YORK (AP) -- Shares of bond insurers mostly rose Friday after a report said turnaround specialist Wilbur Ross was in talks to buy Ambac Financial Group Inc.
Ross has engineered turnarounds in distressed sectors like steel in the past.
The bond insurance sector has taken a drubbing in the past six months as the value of insured debt plummets. Because bond insurers have to assume that cheaper bonds are more likely to default, companies in the sector have booked tremendous credit losses.
These losses have prompted ratings agencies to consider downgrading bond insurers' financial strength ratings. Fitch has downgraded Ambac Financial and Security Capital Assurance Ltd., and all three major ratings agencies have downgraded ACA Capital Holdings Inc.
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http://biz.yahoo.com/ap/080125/sector_glance_bond_insurers.html?.v=1
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