Fifteen months after Assured Guaranty Corp. agreed to reinsure $13 billion of CIFG Assurance NA’s public finance portfolio, the process of transitioning from one insurer to the other is not completed, meaning insured bondholders could be at risk.

Reinsurance typically works like this: if a CIFG-backed bond defaults, CIFG will pay the bondholder principal and interest directly, while the reinsurer, Assured, will reimburse CIFG.

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