Financial Security Assurance Holdings Ltd. yesterday received a boost from parent Dexia SA, when the Franco-Belgian bank agreed to inject $300 million in the company and take on responsibility for the "liquidity and credit risks" of FSA's financial products business, the company announced yesterday.

FSA also announced a shift in strategy, saying it will exit the asset-backed securities business that has plagued bond insurers to focus exclusively on public finance, which it feels represents high demand in a lower-risk market.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.