With more earnings released late last week, bond insurers continued to post large net incomes largely as a result of an accounting rule that discounts the value of their liabilities based on the market's perception of the company's own risk of non-payment.

MBIA Inc. recorded $1.7 billion in net income for the second quarter thanks in large part to $3.3 billion in pre-tax unrealized gains on credit derivatives, the company announced Friday. Assured Guaranty Ltd. late Thursday reported a net income of $545.2 million for the second quarter, with an after-tax unrealized gain on credit derivatives of $518.3 million.

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