curious.. but isn't the news out of harrsburg now, and stockton before, essentially "bad" news ?
so why this steady climb ? just general improving market conditions ? If so.. if Harris adn Stock turn out even slightly favorable.. the stock is really going to pop, not to mention Moodys rating is still not resolved ?
More buyers than sellers. There isn't always a good fundamental reason.
Having said that, I think it is just that people are a little less afraid of deflation/believe in some inflation. Inflation is good for borrowers having a hard time making their payments so AGO and others who have been at risk see their potential liabilities decline. Central banks impact share prices far more than people like to acknowledge.
Go to the web site of AGO and listen to the Keefe Brunette Woods conference call . Bottom line is they are (1) fighting these ch 9 filings (2) buying in bonds that they insure that they think will have greater value down the road . Also Frederico said that this a two edge sword since buyers of these lower tier muni's will want insurance or they will not buy them. But listen to the call it is very very informative.