The turmoil in the subprime market has spared no one, including monoline insurers that have traditionally kept their attachments to the triple-A level. To that end, a couple of rating agencies have expressed concern as to whether the industry's guarantors can escape the current turbulent period without taking financial hits along with the rest of the ABS business.

Moody's Investors Service recently laid out several scenarios involving U.S. subprime losses that could potentially hit these insurance companies. Fitch Ratings recently put out a similar report as well, saying that with all of the downgrades in the subprime and ABS CDO markets, the capital cushions of these insurers are currently more vulnerable.

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