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The financially-ailing City of San Diego has been hanging its hat on tapping into the municipal bond market once long-delayed audited financial statements are completed. But the muni bond market is being hit by the mortgage crisis. Muni bond insurers have purchased many packages of fixed instruments that are filled with mortgages of dubious value. Stock of Ambac, which insured the ballpark bonds, is down almoste 50 percent this year, notes the Wall Street Journal. San Diego would not be able to sell non-insured bonds.
The financially-ailing City of San Diego has been hanging its hat on tapping into the municipal bond market once long-delayed audited financial statements are completed. But the muni bond market is being hit by the mortgage crisis. Muni bond insurers have purchased many packages of fixed instruments that are filled with mortgages of dubious value. Stock of Ambac, which insured the ballpark bonds, is down almoste 50 percent this year, notes the Wall Street Journal. San Diego would not be able to sell non-insured bonds.