Australian investment bank Macquarie will be setting up a U.S. bond insurer unit with initial capital of $2.5 billion.
This development comes after the major monoline insurers MBIA, Ambac, XLCA and CIFG experienced negative rating actions.
Macquarie ran a New York Times advertisement announcing its intent to create an unnamed, New York-based stock insurance company, and the involvement of a municipal and infrastructure corporation in financial guarantee and credit insurance.
Macquarie is considering other initiatives besides a bond insurer, such as raising a global special situations fund and possibly entering Europes distressed debt market.
