municipal bond insurance

Municipal bond insurance

An insurance policy which guarantees payment on municipal bonds in the event of default .

Municipal Bond Insurance

A guarantee that the principal and coupon on a municipal bond will be paid at the appropriate times. Municipal bond insurance is usually structured in such a way that a private organization such as a bank is the actual issuer of the municipal bond, rather than the municipality itself. The bank does this in exchange for a fee. Municipal bond insurance grants a higher credit rating to the bond.

municipal bond insurance

A guarantee from a third party that principal and interest will be paid to a bondholder. Municipal bond insurance is written by private corporations for a fee paid by issuers hoping to obtain higher ratings and lower interest costs. Investors purchasing insured bonds or insured trusts obtain increased safety at the cost of lower yields.
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will be lead manager for this negotiated sale, which will be insured by FHA, with a municipal bond insurance wrap by FGIC.
Historically, municipal bond insurance has also provided a buffer from price declines when bonds are at risk of downgrade or default.
The long-term 'AAA' rating on the bonds continues to be based on the municipal bond insurance policy issued by Ambac Assurance Corporation, which insures scheduled payments of principal and interest on the bonds.
The rating is based on the 100% credit support provided by the municipal bond insurance policy issued by Financial Guaranty Insurance Co.
The bonds originally were rated based on: a municipal bond insurance policy provided by Financial Guaranty Insurance Company (Policy) with respect to the 'AAA' long-term rating, and the standby bond purchase agreement (Standby) provided by FGIC Securities Purchase Inc.
At that time, the company's predecessor, the Municipal Bond Insurance Association, reorganized and established MBIA Inc.
The bonds originally were rated based on a municipal bond insurance policy provided by Financial Guaranty Insurance Company (the policy) with respect to the 'AAA' long-term rating, and the standby bond purchase agreement (the Standby) provided by FGIC Securities Purchase Inc.
Karvelis, formerly executive vice president of Municipal Bond Investors Assurance Corporation, the municipal bond insurance subsidiary of MBIA Inc.
The long-term 'AAA' rating assigned to the bonds is based on the support of a municipal bond insurance policy provided by Financial Guaranty Insurance Corporation (FGIC), which insures scheduled payments of principal and interest on the bonds, effective as of the date of issuance of the bonds.
since its formation in 1986 to 1990 and as a governor of the Municipal Bond Insurance Association, the predecessor organization of MBIA Inc.
The bonds originally were rated based on: a municipal bond insurance policy provided by Financial Guaranty Insurance Company (the Policy) with respect to the 'AAA' long-term rating, and the standby bond purchase agreement (the Standby) provided by FGIC Securities Purchase Inc.
Founded in 1973, MBIA was a pioneer in developing municipal bond insurance to produce interest cost savings for municipal issuers and added security for municipal bondholders.
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