An uptick in Q2 for bond insurance

Assured Guaranty accounted for a total of $9.776 billion in 290 deals for a 62.8% market share in the first half of the year, compared to $9.977 billion in 382 deals for a 56.4% market share over the same time period in 2022.

The firm's "secondary market par written for the first half of the year was $280 million, bringing our total insured par to $10.1 billion in the primary and secondary markets," said Robert Tucker, senior managing director of investor relations and communications at Assured.

Assured Guaranty also saw an 86% increase in insured par quarter-over-quarter insuring $6.4 billion in the Q2, he noted.

The $6.4 billion in par Assured "guaranteed during the second quarter was 26% higher than the same period last year," Tucker added.

During the second quarter, the firm guaranteed 13 transactions "totaling $4 billion that each utilized over $100 million of Assured Guaranty insurance," $1.1 billion for the Dormitory Authority of the State of New York and a $756 million Houston Airport System transaction, he said.

This "brought the total number of transactions that utilized over $100 of our insurance during the first half of 2023 to 21 transactions for a total of $5.6 billion," he said.

Assured continued to add value on "double-A credits during the second quarter, as we insured almost $1.5 billion of par, and issued 24 policies covering 17 primary deals and seven secondary market transactions," he said.

In aggregate, the firm insured during 1H "approximately $2.2 billion of par and issued 40 policies, 32 of which were for primary market deals with double-A underlying ratings," he said.

Build America Mutual insured $5.795 billion, or a 37.2% market share, in 331 deals during 2023, compared to $7.711 billion, or a 43.6% market share, in 462 deals in 2022

BAM had "a solid first half of 2023, supported by strong demand for BAM's guaranty from institutional municipal bond investors who were looking to maximize liquidity and manage ratings volatility in their portfolios," said Mike Stanton, head of strategy and communications at BAM.

That translated to "continued utilization of insurance on larger and higher-rated transactions," with BAM insuring "23 transactions with par of $50 million or more, which generated $2.7 billion par insured," he said.

That large-deal activity was in line with the firms' 2022 results, and "the pace of large transactions accelerated in the second quarter even as total market activity declined," he said.

Over 25% of BAM's insured par had "public underlying ratings in the double-A category or better from S&P or Moody's," he said.

The firm only insures "municipal bonds for issuers that finance essential services, and our first half activity reflected that, with strong results for water and wastewater utility bonds, K-12 education, and general governments," he said.

Highlights included "$350 million for the Irvine Facilities Financing Authority in Southern California, $315 million for the City of Springdale, Arkansas, and a $208 million of bonds from the Greater Texoma Utilities Authority that will finance water and wastewater treatment investment for Sherman, Texas," according to Stanton.

Higher education was another strong sector, "highlighted by $148 million of bonds for the new business school at the University of Nevada in Reno, and $115 million for the University of New Hampshire," he added.