Despite cities such as Stockton making headline news for refusing to honor its debt obligations, the number of defaulted municipal issuers is actually down by 32% from the first half of 2011. The total dollar amount of defaulted muni bonds is down to $800 million from $1 billion over the same time period last year. This is very good news for both investors in municipal bonds, and the bond insurance companies such as AGO, and MBI.
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