MBIA, Inc.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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 ?
Cronin previously spent 16 years in various roles of increasing responsibility at MBIA, Inc., including as Vice President, New Business Development where she was in charge of marketing and developing new business opportunities.
The county's largest lease during the course of the year was for 85,000 square feet, taken by MBIA, Inc. at 1 & 2 Manhattanville Road in Purchase.
The company, a subsidiary of financial guarantee insurer Armonk, N.Y.-based MBIA, Inc., says its exposure consists of more than $18.5 billion to the San Bernardino City Joint Powers Financing Authority leases for municipal properties and less than $15 million to San Bernardino city sewer.
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.
As part of the settlement, MBIA, Inc., and MBIA Insurance Corporation have agreed to reforms and a review of their practices by an independent consultant, and will pay a total of $75 million in restitution and penalties.