Muni-Bonds showing strenght, causing bond insurers to rally.
Assured Guaranty and MBIA take off.
Sentiment: Strong Buy
Public Finance Companies
Financial Guaranty Companies
Structured Finance Companies
All rally on improving municipal finance improvement. Strinking dollar and improving EURO improve exchange rate on foreign guarantees.
Muni-Bonds improve on better tax collections for local, state and county debt.
As real estate values increase in value, tax assessment will rise. That's why California state govenor predicts a balance budget for first time in ten years. Business tax collections rise as economy improves.