With ongoing problems in the bond insurance market, large institutional investors say they continue to find value on A-rated bonds - with insurance - in the secondary market now that spreads between generic triple-A and single-A paper have widened by approximately 30 basis points versus where they were before the subprime mortgage crisis unfolded over eight months ago.

The price deterioration is enabling investors to buy A-rated underlying paper with insurance at spreads not recently or readily available in the credit markets, said Phil Condon, managing director at Deutsche Asset Management in Boston.

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