Curt Schilling’s Wayward Pitch Won’t Strike Assured Guaranty Ltd. (AGO)

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A win for bond insurers
The vote to pay the first bond payment is a win for Assured and all bond insurers, since other government entities will presumably think twice before defaulting themselves if the cost appears to be too high.

Even if the vote had gone the other way, Assured Guaranty Ltd. (NYSE:AGO)’s improving health would have kept the suffering to a minimum. The insurer has had a run of good luck recently, wringing a $105 million settlement from Flagstar Bancorp Inc (NYSE:FBC) regarding mortgage-backed securities it backed during the go-go days of 2005 and 2006. Flagstar Bancorp Inc (NYSE:FBC) also came to terms with MBIA Inc. (NYSE:MBI) a few weeks ago, paying that insurer $110 million.

Add to that the fact that rising interest rates can only pique interest in the services that bond insurers have to offer, and Assured Guaranty Ltd. (NYSE:AGO)’s future looks, well, assured. Unfortunately, the same can’t be said for the state of Rhode Island.

The article Curt Schilling’s Wayward Pitch Won’t Strike Assured Guaranty originally appeared on Fool.com is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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