MBIA Outflanked by BofA in Toxic Bond Battle

MBIA Outflanked by BofA in Toxic Bond Battle

Victor J. Blue/Bloomberg

MBIA shares fell the most in three years and credit-default swaps tied to its debt surged by the most since July 2009 after Bank of America offered yesterday to buy the insurer’s $329.1 million of 5.7 percent bonds due in December 2034.