CHICAGO – Detroit’s threat to default on up to $2 billion of bond debt will shine a light on a beleaguered sector of the municipal market -- monoline bond insurers that wrap nearly all the city’s bonds.

“This is an important opportunity for bond insurance companies to prove their worth and validate the importance of their industry,” Richard Ciccarone, chief research officer at McDonnell Investment Management LLC. “It’s a real opportunity for the stronger insurance companies.”

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