In a low interest rate environment which makes it difficult for the bond insurers to sell their product, the penetration rate of municipal bond insurance dipped to 5.77% from a seven-year high of 6.36% at the close of 2015.

There has been a total of $12.91 billion of insurance wrapped municipal bonds in 975 transactions thus far in 2016, slightly down from the $14.36 billion in 1,084 transactions during the first half of 2015, according to data from Thomson Reuters. Overall, insurance is down 10.1% year-over-year.

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