Bond insurance

Officials from the Westchester County city and ACA Financial Guaranty disagree over who is on the hook for revenue bonds that aren't generating enough revenue.

Over the years, Assured Guaranty has been open to guaranteeing in the U.K. and most of Europe, Australia, and New Zealand and through AGM in the U.S. they cover certain transactions within the Latin American region.

Bank of America, JPMorgan, Goldman Sachs, Citigroup, UBS, Morgan Stanley, RBC, and Santander are defendants.

A total of $14.8 billion of par has been wrapped by bond insurance through May of this year, compared to $9.76 billion through the end of May 2020.

Shea, a veteran of the municipal bond business, joins the insurer's board. She will serve on its audit and environmental and social responsibility committee.

Bond insurers grew their business in Q1 2021 to $8.497 billion from $4.826 billion in Q1 2020 as more investors demand and issuers purchase insurance for their deals in the COVID-19 era.

The bond insurer adds a second office in the Lone Star State, where it does a large volume of business.

The judges should rule soon on insurer suits seeking monetary compensation against major bond underwriters.

As issuance rose in 2020, so did municipal bond insurance usage, with $34.167 billion wrapped, or 7.5% insured total issuance from almost 5.7% in 2019.

After leaving Assured Guaranty in 2011, Randy Gerardes is now back with the firm.

The two active municipal bond insurers wrapped $25.22 billion in the first three quarters of 2020, a 62% surge from the $15.57 billion of deals done in the first nine months of 2019.

Build America Mutual has extended its GreenStar program to include non-insured deals as well as also being placed on the Nasdaq Sustainable Bond Network.

The impact of COVID-19 has had a positive outcome for the bond insurers, as use of municipal bond insurance has surged 44.2% year-over-year for the first half of 2020.

The COVID-19 pandemic is helping the bond insurance industry grow, a report from Kroll says.

Their suit against 11 bond underwriters will be heard in a local, rather than federal, court, the lead judge said Wednesday.

S&P conducted its review of Assured Guaranty and views the firm's approach to writing business in current market conditions as well thought out and measured.

COVID-19 has put large burdens on state and local coffers and new business for the municipal bond insurers, generally, has increased.

Build America Mutual's underwriting and risk-management guidelines have an insured portfolio that does not reflect the overall U.S. municipal market and may perform better in a stressful economic scenario, S&P said.

So far this year, the bond insurance industry is on a better pace than it was last year. As of May 9, both Assured Guaranty and Build America Mutual have accounted for $7.30 billion in 563 deals, up from the $5.99 billion spanning 490 transactions as of May 9, 2019.

Assured Guaranty and BAM, the two active muni bond insurers, released statements Monday saying they are prepared and able to manage impacts of COVID-19.