Bond Insurance

Is Bond Insurance an Option Again? (2/13/2013)

View the slides or view the webcast presented by CDFA and BNY Mellon.

 

S&P Full Analysis: Build America Mutual Assurance Co. (8/2/2012)

S&P discusses its expectation that BAM will achieve and sustain a very strong competitive position.

 

Municipal Investors' Insurance Safety Blanket Has Been Unwrapped (9/21/2011)

As of 1H'2011, insurance penetration in the U.S. municipal market is less than 10%.

 

Bond Insurance: Past, Present and Future — Part II by Larry Levitz (6/14/2010)

Last week, our review of bond insurance looked at the history of this industry. This week, we look at the current state and likely future of bond insurance.

The municipal bond landscape looks very different today from three years ago. FGIC, CIFG and Syncora (XL) have had their ratings withdrawn or are rated well-below investment grade making it unlikely that they will fully operate again. Assured is the only insurer regularly providing bond insurance, although there are problems with its structured finance book of business. These concerns led Moody’s recently to downgrade Assured’s rating to Aa3 from AAA. MBIA and AMBAC have proposed forming new bond insurance ventures. MBIA created a new subsidiary, National Public Finance Guarantee Corporation (National) to operate as a public finance-only insurer. However, MBIA is involved in litigation regarding its transfer of capital to National. Until the litigation is resolved, National will have to wait on the sidelines...

Larry Levitz is a contributor to Muni Market Update. The opinions expressed are his own.

 

Bond Insurance: Past, Present and Future by Larry Levitz (6/7/2010)

In late 2007 and 2008, the municipal bond insurance industry imploded as a result of its substantial expo-sure to the collapsing housing market. The industry had guaranteed billions of dollars of mortgage-backed securities over the previous five years, leaving itself vulnerable to the unprecedented financial meltdown. During 2008, all but one of the top-rated

legacy insurers lost their coveted triple A ratings – the highest rating from each of the three main rating agencies; Moody’s, Standard & Poor’s (S&P) and Fitch. These rating actions effectively ended their ability to write new busi.ess. This once-dominant force in the municipal marketplace, which insured about half of all municipal bonds issued between 2002 and 2007, today consists of only one active player, Assured Guaranty (Assured)...

Larry Levitz is a contributor to Muni Market Update. The opinions expressed are his own.

 

Municipal Insurer Update (8/19/2009)

Only four bond insurance companies with investment grade ratings remain.

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