Monoline Bond Insurers
Monoline bond insurers are companies that provide financial guarantees to bond issuers. These companies guarantee the payment of principal and interest on bonds, and in some cases, they also provide credit enhancement services. Monoline bond insurers are typically used by municipalities and other public entities to reduce the cost of borrowing and to increase the creditworthiness of their bonds. Monoline bond insurers are also used by corporations to reduce the cost of issuing debt.
History of Monoline Bond Insurers
Monoline bond insurers have been around since the early 1980s. The first monoline bond insurer was Financial Guaranty Insurance Company (FGIC), which was founded in 1983. Since then, several other monoline bond insurers have been established, including MBIA, Ambac, and Assured Guaranty. These companies have become increasingly important in the bond market, providing financial guarantees to bond issuers and helping to reduce the cost of borrowing.
Comparison of Monoline Bond Insurers
| Company | Year Founded | Rating |
|---|---|---|
| Financial Guaranty Insurance Company (FGIC) | 1983 | A+ |
| MBIA | 1986 | A |
| Ambac | 1971 | A- |
| Assured Guaranty | 2003 | A+ |
Summary
Monoline bond insurers are companies that provide financial guarantees to bond issuers. These companies guarantee the payment of principal and interest on bonds, and in some cases, they also provide credit enhancement services. Monoline bond insurers have been around since the early 1980s and have become increasingly important in the bond market. For more information about monoline bond insurers, you can visit the websites of the major monoline bond insurers, such as FGIC, MBIA, Ambac, and Assured Guaranty.
See Also
- Credit Enhancement
- Bond Insurance
- Municipal Bonds
- Corporate Bonds
- Financial Guaranty Insurance Company (FGIC)
- MBIA
- Ambac
- Assured Guaranty
- Credit Default Swaps
- Structured Finance
