Buffett’s formation of a bond insurance company provided some validation to an industry that has been battered by fears of collapse in recent weeks.

Though analysts said the move by Buffett provides a stamp of approval for the broader business model, which has recently come under fire, shares of Buffett’s newest competitors were hammered Friday. “If I was thinking of investing in financial guarantors, this would give me comfort,” said Donald Light, a senior analyst with Celent.

Socialize