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It costs more to insure California's municipal debt than Kazakhstan's bonds

Discussion in 'Sports and News' started by The Big Ragu, Jan 14, 2010.

  1. mustangj17

    mustangj17 Active Member

    Because they are different countries I would assume they have different regulations. All insurance in the U.S. is regulated.

    But maybe I'm wrong.

    In any event, if California's risk was more stable, that company would be stupid to have less expensive premiums for the debt of K-stan. Since all the insurance company is doing is "buying a risk" they put themselves at harm by not getting the true value of the risk.

    So the underwriters are either really bad at their jobs, or California's risk is truly worse than K-stan's.
     
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