Bond Insurers Higher on Key Win By Assured Guaranty (AGO) over Flagstar Bancorp (FBC)

February 6, 2013 1:31 PM EST
Bond insurers are on the rise Wednesday after a judge ruled that Flagstar Bancorp (NYSE: FBC) must pay Assured Guaranty Ltd. (NYSE: AGO) $90.1 million in a contract dispute over mortgage-backed securities. The judge ruled that Flagstar had materially breached contracts specifying the quality and characteristics of loans to be packaged into the securities.

Assured Guaranty Ltd. is rising 6.3% on the news, while MBIA Inc. (NYSE: MBI) is up 10%.

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