Losses on guaranteeing residential mortgage-backed securities created from 2005 to 2007 "will continue to weigh on bond insurers for many years," Standard & Poor's Corp. says.

Insurance written on residential mortgage-backed securities, including subprime home loans, has forced some companies into "hibernation" — taking on no new business and canceling credit-default swaps contracts in return for cash and ownership interests — to stay afloat, S&P said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.