Worries over the financial sector are easing a little bit today as the focus moves to bond insurers and anticipation over an expected deal to bailout bond insurer Ambac. Even though Warren Buffett rescinded his offer to reinsure bond holdings, he is trying to bid on a bond portfolio instead. Many bond insurers were hit hard by the subprime meltdown, and sustained heavy losses due to subprime writedowns.
The Wall Street Journal reports on today's stock market focus:
Bond insurers are sure to be in focus, after reports a day earlier that troubled bond insurer Ambac is near a deal on an infusion of capital to shore up its business. The bailout hopes also contributed to Tuesday's late-day rally to help U.S. stocks finish well off lows.
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