The Municipal Infrastructure and Assurance Corp. came one step closer to insuring municipal bonds by gaining approval from the New York Insurance Department to act as a financial guarantor.

As a well-capitalized addition to the beleaguered bond insurance industry, the new venture - co-sponsored by Macquarie Group and Citadel Investment Group - could help drive down costs for municipal issuers once it enters the market, MIAC executive vice chairman Richard Kolman said in an interview.

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