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AIG Plotting Bond Market Comeback as Swaps Fall: Credit Markets

American International Group Inc. is plotting a comeback in the bond market as perceptions of the insurer’s creditworthiness rise to the highest since before its $182.3 billion rescue by the government in September 2008.

AIG is preparing to raise money in a debt sale by year-end as Chief Executive Officer Robert Benmosche seeks independence from the U.S. government, the New York-based company said in a Nov. 5 filing. The cost of protecting AIG’s debt with credit-default swaps has tumbled to 188 basis points from as high as 3,683 in May 2009, according to data provider CMA.