The Los Angeles Superior Court ruled last week against holders of Executive Life Insurance Co.-backed bonds, sending prices for $1.93 billion of municipal securities down by 33%.

The ruling, handled down Wednesday at 7:30 p.m. eastern daylight time, found that the California Insurance Commission's rehabilitation of Executive Life may include compensating municipal guaranteed investment contracts according to purchase price rather than face value.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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