The two largest triple-A bond insurers might look to reinsure their "very reinsurable" portfolio of asset-backed securities and municipal bonds if the rating agencies tell them to raise more capital, executives from Ambac Financial Group and MBIA Insurance said yesterday.

The two executives, along with a third from Security Capital Assurance, said reinsurance would be their first option to boost capital levels, commenting at a bond insurance mini-conference hosted by Banc of America Securities in New York. The insurance executives added that slowing new business production, asking from more money from their parent companies, and selling new debt or equity are also options.

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