Two aggrieved bond insurers took to the offensive yesterday, answering claims made by Moody's Investors Service Tuesday that further deterioration in second-lien mortgage securities could put pressure on the bond insurers' capital levels.

Both MBIA Inc. and Ambac Financial Group countered Moody's claims with detailed explanations of their relevant exposures and assurances that the current capital levels are adequate for covering any losses in the direct residential mortgage-backed security part of their portfolio.

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