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 ?
Justice Shirley Werner Kornreich of New York State Supreme Court in Manhattan rejected a plea by Credit Suisse to dismiss the suit by MBIA, Inc.
MBIA, Inc had sued the Credit Suisse Securities unit - which underwrote the bonds - in December as losses on the transaction mounted.
If the underwriters exercise their over-allotment option, MBIA, Inc.
A plea by MBIA, Inc (NYSE: MBI) to dismiss a lawsuit that accuses it of splitting up its guarantee business to prevent a pay off on bond insurance policies has been rejected by a court.
MBIA, Inc said in February 2009 that it would divide its insurance business into two companies after losing top credit ratings.
In the restructuring exercise, MBIA, Inc created National Public Finance Guarantee Corp, which assumed USD5.
The Fund is managed by 1838 Investment Advisers, LLC, a wholly-owned subsidiary of MBIA Asset Management, LLC, which in turn is wholly-owned by MBIA, Inc.
Banks such as Bank of America Corp (NYSE: BAC), JPMorgan Chase & Co (NYSE: JPM) and UBS AG (NYSE: UBS) have sued bond insurer, MBIA, Inc.
MBIA, Inc diverted USD5bn of assets out of its MBIA Insurance Corp division to fund a new unit.