FGIC


Also found in: Acronyms.

Federal Guarantee Insurance Corporation

A private company providing financial guarantee insurance for different types of transactions. For example, an insurance policy may cover a lender from liability resulting from the failure of the borrower to repay the loan. The FGIC originally provided this insurance exclusively for municipal bonds, but expanded into different transactions, such as IPOs. Clients pay the FGIC the appropriate premium in exchange for a guarantee of repayment in case of default; this increases the bond's credit rating and, usually, decreases its interest rate. The services that the FGIC provides are similar to sureties or co-signed loans.

Financial Guaranty Insurance Corporation

A private company providing financial guarantee insurance for different types of transactions. For example, an insurance policy may cover a lender from liability resulting from the failure of the borrower to repay the loan. FGIC originally provided this insurance exclusively for municipal bonds, but expanded into different transactions such as IPOs. Clients pay FGIC the appropriate premium in exchange for a guarantee of repayment in case of default; this increases the bond's credit rating and usually decreases its interest rate. The services FGIC provides are similar to sureties or co-signed loans.

FGIC

References in periodicals archive ?
The recent agreement will resolve pending litigation, as well as outstanding and potential claims by FGIC related to alleged representations and warranties breaches and other claims involving such securitisations.
According to one consultant, it will be difficult for FGIC to come out of rehabilitation and return to writing insurance for the bond market because much of that business has dried up.
FGIC had two floors at 125 Park Avenue, but renewed and doubled its presence in the building about two years ago, a source said, converting its existing space and two new contiguous floors into an elegant, nearly seamless installation.
A potential financial bailout of New York-based FGIC is being led by Calyon, the investment-banking unit of French bank Credit Agricole SA.
FGIC entered into Chapter 11 Bankruptcy protection in 2010 after a series of quarterly losses due to its insuring of residential mortgage-backed securities from 2005 through 2007.