Fitch Ratings has different take on the return of bond insurance.

Insurance ‘wrappers,’ popular before the credit crisis, are being used once again, primarily in the municipal bond market and to a lesser extent in some emerging market securitizations. This is despite the fact that the insurance companies offering it have yet to restore their triple-A ratings. In a report published last week, Fitch said that this can be explained by the fact that insurance has value beyond a ratings uplift. It also provides credit enhancement.

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