S&P Picks and Pans: Bond Insurers, Citi, UBS, Best Buy
S&P REITERATES NEUTRAL STANCE ON FINANCIAL GUARANTY INSURERS
We believe mounting pressure from multiple sources, including politicians trying to address what we see as a mounting municipal finance crisis, increases the likelihood that other bond insurers may seek to split into two entities, for muni bond insurance and for structured finance. Although we believe this may speed resolution, we advise equity investors to be cautious. Because of its top-tier financial strength, we have a buy opinion on Assured Guaranty (AGO; $22.58) , but would hold Ambac (ABK; $10.02) , Security Capital (SCA; $1.60), and sell MBIA (MBI; $11.98). /C. Seifert
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