Berger doesn't think National Public Finance Guarantee will make a big comeback
10:43 EDT - S&P moving MBIA's (MBI) muni insurer into investment-grade territory came as a surprise to Thomson Reuters Municipal Market Data's Dan Berger . Despite the rating agency's apparent optimism about the business, Berger doesn't think National Public Finance Guarantee will make a big comeback, pointing to the diminished use of muni-bond insurance. It's been on less than 10% of new volume since 2009 and MBI hasn't written a new muni policy in years. "Bond insurance has a failed operating history, and MBIA and its peers will never regain their AAA rating or importance as a meaningful presence in the muni-bond market," argues Berger.