Bond insurers are getting smoked following the freak out in Puerto Rico

Bond insurers MBIA and Assured Guaranty are under significant pressure thanks to their exposure to Puerto Rican debt. A bond insurer sells insurance to owners of bonds, which serves as protection in the event of default. Monday's selling has the stocks trading down 17% and 12%, respectively, after Governor Alejandro García Padilla warned Puerto Rico would have trouble paying off its $72 billion debt load. According to a November 18 press release by Moody's, "MBIA and Assured Guaranty will be a...