Ambac backs new bond muni issues

From Times Wire Services

Ambac Financial Group Inc., the world's second-largest bond insurer, has backed eight new issues in the municipal bond market since it raised capital to safeguard its credit ratings.

The company said it insured a $46.8-million lease financing deal for the city of Compton and a $62-million Alaska Municipal Bond Bank issue.

Ambac, and competitors such as MBIA Inc., stumbled after expanding from backing debt issued by cities and states, which rarely default, to insuring securities backed by sub-prime mortgages.

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