State regulators provided a boost to two insurers yesterday, as New York said it was holding off on placing CIFG into rehabilitation due in part to commutation agreements the company announced, and Wisconsin gave approval for Ambac Financial Group Inc. to reactivate insurance subsidiary Connie Lee Insurance Co.

The moves could also help municipal bond investors, with CIFG announcing it will seek a double-A or better insurer to reinsure its public finance book as part of a memorandum of understanding it signed with credit default swap counterparties and insured bondholders on its asset-backed securities and commercial real estate collateralized debt obligations.

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