MBIA, Inc.

(redirected from Municipal Bond Insurance Association)
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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 ?
Elliott served as chairman of the Municipal Bond Insurance Association, predecessor of MBIA Corporation, from 1976 to 1980 and from 1984 to 1986.
During the 1970s, Weill acted as counsel to MBIA's predecessor, the Municipal Bond Insurance Association, and its managing agency, Municipal Issuers Service Corporation.
Elliott began serving as chairman of the Municipal Bond Insurance Association, the predecessor of MBIA, in the early 1970s while at The Aetna Casualty and Surety Company.
He was also Chairman of the Municipal Bond Insurance Association, predecessor of MBIA Insurance Corporation, from 1976 to 1980 and 1984 to 1986.
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