Bond insurance works by having an insurer, often a larger, financially stable entity, guaranteeing that they will cover the bond’s principal and interest payments should the issuer default.

Understanding Bond Insurance . The rating of a debt instrument takes into account the creditworthiness of the issuer. The riskier an issuer is deemed to be, the lower its credit rating and, thus ...

Bond insurance can reduce interest rates for issuers. Learn how bond insurance works and how it impacts investors. S&P 500 +---% | Stock Advisor +---% Join The Motley Fool ...

While a bond is not an insurance policy, you may hear the term “bonded and insured.” That’s referring to two separate things: Insured means that you purchased business liability insurance.

Municipal bond insurance grew 10.4% year-over-year in 2023 leading to the highest market penetration rate since 2008, despite the second year of down issuance.

BOND INSURANCE....Last night I was reading a story in the Wall Street Journal about the travails of "struggling bond insurer" ACA, and although the basic story was one I'd read about before, ...

Municipalities buy insurance to obtain a higher credit rating for a bond issue and a commensurately lower borrowing cost. The savings arise from a lower coupon or, if the coupon is fixed, a higher ...

Muni bond insurance is still considered to be "completely worthless," he says. While individual investors used insurance as a "crutch" when buying muni bonds, that safety net is gone, he says.

The decimated municipal-bond insurance industry is having a renaissance. Weakened by Covid-19, state and local borrowers are using insurance at their highest rates in more than a decade.