The new bond insurer, BAM, intends to begin under- wri ng in September, with expecta ons for at least $10Bn of par wrapped in the rst twelve months. In the- ory, this will trade more weakly at outset and will slowly improve over the next few years. Whether or not this outperformance will outweigh other market vectors is debatable; however, ini ally insured, longer maturity BAM bonds will provide at least modest outperformance prospects for investors with pa ent capital to spend.
July 30, 2012
MMA Weekly Outlook Report on BAM