Healthy bond insurers are not expected to return to the municipal world for at least two or three years, leaving investors without a safety net for the foreseeable future, analysts at Moody's Investors Service said.

And while there have been signs of new entrants into the bond insurance space — most recently the announcement from Radian Group and the National League of Cities that they will explore the formation of a mutual bond insurance company — new startups aren't likely to have an effect on the market for several more years.

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