Bond guaranty coverage has been provided on 11.6 percent of the dollar volume of non-agency MBS issued through the first eight months of 2004, down slightly from the 11.9 percent share captured during same period last year. A new Inside MBS & ABS analysis of how bond insurance has been used in the non-agency MBS market shows that issuers have found little incentive to acquire the coverage for most of their deals this year. In…