New York plans to refund $2 billion of its $4 billion of state-backed auction-rate securities and to convert $750 million of variable-rate demand bonds into fixed-rate mode, state budget director Laura Anglin said yesterday.

"Our main focus is to try to reduce our exposure to the auction-rate bonds that are mostly tied to the weak insurers," Anglin said. Those insurers include Financial Guaranty Insurance Co., CIFG Assurance North America Inc. and XL Capital Assurance Inc., she said.

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