MBIA, Inc.

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MBIA, Inc.

A private corporation that guarantees principal and interest payments on debt securities and some asset-backed securities. Founded in 1974 upon the merger of several casualty insurance companies, MBIA originally specialized in guaranteeing municipal bonds. It has since expanded to other investment vehicles such as corporate bonds and mortgage-backed securities. Clients are issuers who pay a fee to MBIA in exchange for the insurance. MBIA insurance typically guarantees the highest possible credit rating and lowers the overall cost of the issue.

MBIA, Inc.

A private corporation that provides financial guarantees and investment management products and services. MBIA was formed as a consortium of five casualty insurance companies in 1974 to guarantee principal and interest payments on municipal debt. It has since expanded its scope to guarantee structured asset-backed and mortgage-backed transactions, corporate bonds, and obligations of financial institutions. Borrowers pay MBIA a fee and, in return, issue debt that receives a higher rating and carries a lower interest rate.
References in periodicals archive ?
IA), $23,800,000 (Old Capitol Town Center) revenue bonds, series 2006 (insured: MBIA Insurance Corp.
But MBIA still derives more than 80 percent of its revenues from municipal insurance - guaranteeing the payment of principal and interest on bonds sold by state and local governments.
Irwin, MBIA Assistant Vice President of Financial Institution Enhancements.
In 1984 he joined the managing agency of the Municipal Bond Insurance Association, the predecessor to MBIA Corporation.
If at any time during the next four-to-six weeks, MBIA is able to obtain further capital commitments and/or put in place reinsurance or other risk mitigation measures, on top of the $1 billion capital commitment the company received from Warburg Pincus, that would help improve MBIA's Matrix result at an 'AAA' rating stress, Fitch would anticipate affirming MBIA's ratings with a Stable Rating Outlook.
Elliott served as chairman of the Municipal Bond Insurance Association, predecessor of MBIA Corporation, from 1976 to 1980 and from 1984 to 1986.
Maguire, general manager of MBIA Assurance, said, "The use of credit enhancement from MBIA Assurance will result in significant interest cost savings for the Departement du Nord and added security to bondholders.
Eugenio Mendoza, MBIA managing director and head of new business development in Latin America, noted, "The strength of the capital markets in Mexico has increased demand for financial guarantees over the last few years and MBIA is committed to supporting Mexico's continuing development.
The ratings of MBIA Mexico are dependent upon a Net Worth Maintenance Agreement from its parent, MBIA and a reinsurance agreement where MBIA Mexico cedes 100% of its underwritten risk and earned premiums to MBIA in exchange for a ceding commission from MBIA.
Karvelis, formerly executive vice president of Municipal Bond Investors Assurance Corporation, the municipal bond insurance subsidiary of MBIA Inc.
MBIA General Counsel Ram Wertheim said, "We are pleased to resolve this longstanding matter and to eliminate the additional expense and risks associated with further litigation.
As a result of the ruling, MBIA expects recoveries having a present value of approximately $10 million.