Municipal insurers cheer Illinois pension move

|By:, SA News Editor

The monoline insurers all post gains after Illinois lawmakers approve a pension overhaul in which current workers and retirees will bear a chunk of the costs - a move which could prove to be a template for other states/municipalities with similar issues. Needless to say, unions will be headed to court to block the new law from taking effect.

Yesterday, a judge in Detroit's bankruptcy case ruled pensions are unsecured creditors and thus in line for cuts. Unions and pension funds will surely seek to overturn this as well.

MBIA (MBI +1.2%), Assured Guaranty (AGO +1.3%), Ambac (AMBC +1.3%)