`Ninety Five Percent Of Our Profits Are Locked In'

It's a CEO's dream, an almost perfect money machine. The business of MBIA Inc., the nation's largest insurer of municipal bonds, doesn't seem very glamorous. But it has been producing an almost relentless flow of profits. Consider: The muni market, the last, best tax haven for the individual investor, is booming, despite brief slumps, such as the first quarter of 1994, when issuance fell 26%. The market should remain healthy indefinitely as America rebuilds its aging infrastructure. Bond volume has climbed more than 30% in each of the past three years. The percentage of insured bonds also keeps rising inexorably, as investors forgo the small reduction in yield, about a quarter of a point, for added security.

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