Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares Assured Guaranty (NYSE: AGO) soared more than 25% on Friday after the bond insurer announced a significant settlement with Bank of America (NYSE: BAC) this morning.

So what: Specifically, Bank of America will pay $1.1 billion to Assured in order to settle its demands that the lending giant repurchase its bad mortgages. Along with the big hunk of cash, the settlement sheds some much-needed light on Assured's risk exposures and capital position, so it's no surprise that Mr. Market are becoming more comfortable with the shares.

Now what: Speculative investors might want to take a closer look at the sector. Bond insurers are up across the board today -- MBIA (NYSE: MBI) is even up 20% -- on the notion that if Assured can force a hefty settlement, maybe they will all be able to as well. Bond insurers have been going after lenders over the past several months, arguing that they were given incorrect information about the mortgages they backed, so today's news might be the catalyst for future pops in the space.

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