SAN FRANCISCO — Stockton, Calif.'s bond insurers are contesting the city's bankruptcy filing, saying the city is unfairly targeting bondholders while asking nothing from its largest unsecured creditor, the California Public Employees' Retirement System.

The city's two insurers, Assured Guaranty Ltd. and National Public Finance Guarantee Corp., a subsidiary of MBIA Inc., seek a showdown in court later this month over where bonds stand in seniority compared to pension liabilities.

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