WASHINGTON -- On Wednesday night, College Construction Loan Insurance Association threw itself a party to celebrate its entrace into the municipal new-issue insurance market, but several questions about Connie Lee's future role in the market seemed to linger in the air.

Connie Lee's charter restricts it from insuring the top three tiers of bonds, which is generally understood to mean single-A credits and above. The municipal market must wait to see how aggressively Connie Lee pushes against this ceiling, but friction between it and the private sector is bound to crop up along the single-A border. Will Connie Lee go head-to-head with private firms?

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