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.
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FGIC

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
1, 2014 2:36PM), http:// www.businessinsider.com/r-participants-in-detroit-pension-borrowing-knew-debt-sale-was-iffy-city-lawyer-2014-10 (The COP transaction was described by Detroit's attorney as "iffy" and by FGIC's attorney as "fraudulent.").
At the beginning of October, FGIC arranged to sell the bulk of its $200 billion portfolio of guarantees to rival MBIA after months of turmoil in which the company took losses on insurance it had provided for financial products exposed to bad mortgage debt.
FGIC, which was not represented at the New York hearing, had previously endorsed the concept, telling state regulators that it proposed to start a new company that would inherit insurance contracts on municipal bonds, some $224-billion-worth; guarantees on about $72 billion in mortgage-related bonds would stay in the existing company.
bond insurer FGIC Corp.'s bond insurance unit by Moody's Investors Service.
Exhibit 2 SELECTED FINANCIAL INFORMATION FOR MAJOR MONOLINE BOND INSURERS (As of December 31, 2000) $ Millions AMBAC FGIC Net par exposure $276,252.0 $150,624.0 Net par written $65,303.0 $22,661.8 Total assets $4,473.4 $2,651.8 Statutory capital $2,735.9 $1,913.4 Net income $338.3 $168.6 Losses and loss-adjusted expense $8.6 ($0.3) Average premium rate 63b.p.
One of those looking is the Federal Guaranty Insurance Corporation (FGIC), which is owned by General Electric's Capital division.
Finally, companies like the Municipal Bond Insurance Association (MBIA), the Financial Guaranty Insurance Company (FGIC), and the American Municipal Bond Assurance Corporation (AMBAC) insure the bondholder against default.
Global Banking News-April 22, 2014--BofA agrees USD950m settlement deal with FGIC
The rehabilitation plan tears up FGIC's reinsurance agreement with National Public Finance Guarantee Corp., an affiliate of MBIA Insurance Corp., where it had an exposure of $138 billion.
In addition to FGIC and Syncora guarantees, which have already been reported as impaired, insurer Ambac recently suffered severe ratings downgrades last month by Standard & Poor's.