The end of the monoline? Monoline insurers contemplating bleak future

The huge growth in products and sophistication in global credit markets has been a boon for almost all participants – with one notable exception. Monoline insurers are contemplating a bleak future in the face of changing issuer and investor attitudes towards credit risk. Even their great hope – a return of risk with a turn of the credit cycle – might not be enough to save some of them. Louise Bowman reports.

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“Normally, the willingness of the monolines to go long-term means that they are cheaper for long-term funding. But the banks have been pushing the envelope on tenors and prices so this is simply not the case any more”

OH, HOW QUICKLY they forget. Having nursed several of the largest structured finance markets through their formative years, the monoline guaranty insurance industry is now having to come to grips with the fact that, in many cases, these issuers simply do not need them any more.

The end of the monoline? Monoline insurers contemplating bleak future

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The end of the monoline? Monoline insurers contemplating bleak future

Thanks for your interest in Euromoney!To unlock this article:

Time to shine: Can Europe’s capital markets take centre stage?

Corporates face tough FX hedging decisions as the dollar smile sours

Do those who criticise Pisces actually just misunderstand it?

The future of fixed income trading: redefining the role of human judgement

Thanks for your interest in Euromoney!
To unlock this article: