Bond insurance

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.

The two active municipal bond insurers insured $5 billion more in 2019 than they did in 2018 thanks to a surge of issuance in the fourth quarter.

The two active municipal bond insurers insured $5 billion more in 2019 than they did in 2018 thanks to a surge of issuance in the fourth quarter. Assured Guaranty and Build America Mutual combined for $23.92 billion of insured volume spanning 1,724 transactions and 5.67% penetration rate in 2019. That is up from $18.92 billion in 1,249 deals and 5.58% insured rate in 2018.

Build America Mutual has hired Dan Bingham, who will join BAM’s capital markets team in the newly created role of head of institutional markets.