ratings are based upon the credit quality of the insurer, not the bond issuer.
sales have been 50 percent or more of the municipal bond market.
They ensured that heavily insured Bond
actor Daniel Craig was neither shaken or stirred by the breathtaking chase scenes, which many critics have called the highlight of the new movie.
Hsueh and Liu's hypothesis is: "If the intrinsic default risk of an insured bond
is still priced by investors, the null hypothesis that complete bond insurance acts as a valid signal in the municipal bond market is rejected".
"Why would you accept the same yield on a Puerto Rican insured bond
as on Florida insured bond
This $353 million default on an insured bond
issue increased uncertainty in the municipal bond markets and caused insurers to tighten their bond quality underwriting standards for healthcare issues (Carpenter et al., 2003).
Interest savings can be determined by subtracting the average yield for a bond for a given credit rating and maturity from that of an insured bond
of the same maturity.
Information such as this has allayed any fears that may have existed in the minds of participants in the insured bond
Therefore, Moody's ratings on insured bond
issues are used as a measure of their underlying default probability.
The 30 issuers whose insured bonds
are expected to be affected by the AGLN upgrade have an aggregate net par insured amount of USD12.5bn.
A CDS is a type of insurance contract in which the seller of the CDS promises to pay the buyer of the contract in the event of default on the firm's insured bonds
. So, a smaller spread means there is a lower perceived risk of default on the firm's bonds.
He noted that Wells Fargo Asset Management owns very little Puerto Rican debt, only some short-term insured bonds