[bruinbirdman]

The poop on the lowering bond insurer ratings was something like this:

If the insurers are rated at less than AAA, none of the bonds they insure can be AAA.

This leads to a lowering of the rating of all bonds they insure.

All mutual funds whose prospectus limits them to only AAA bonds will have to sell them.

Is this scenario correct?

yitbos

[Southack]

Bond holders can insure with a new company to preserve their AAA rating.