Bond insurance

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.

The bond insurer may be seeking a more receptive audience for its claim that underwriters provided incomplete and misleading information about the bonds it insured.

The two active municipal bond insurers benefited from the issuance boom in the third quarter, as the industry penetration rate rose slightly despite the fact that interest rates are going back down.

Vice President, Build America Mutual

Vice President, Assured Guaranty

Bond insurers National and Syncora agreed to back the Puerto Rico utility's restructuring plan, bringing support to more than 90%.

The municipal bond insurance industry has seen an uptick in overall par amount insured and a steady industry saturation rate for the first half of 2019.

The insurer seeks at least $720 million from Wall Street firms that underwrote Puerto Rico bonds issued from 2001 to 2007.

Assured Guaranty, the largest municipal bond insurer, is buying BlueMountain Capital Management LLC for $160 million.

The two active municipal bond insurers are currently outpacing their output year-over-year in terms of industry penetration rate, par amount insured and number of transactions. Assured Guaranty and Build America Mutual have combined for $9.69 billion of insured volume spanning 798 transactions and 5.8% penetration rate so far in 2019, up from $9.06 billion in 625 deals and 5.5% insured rate the two achieved during the first six months of 2018.

Build America Mutual announced that it has been accepted as a member of the Federal Home Loan Bank of New York, becoming the first municipal bond insurer to join the system.

Robert Moore, a credit analyst professional, with over 35 years of experience in public finance, passed away recently.

Municipal bond analyst Natalie Cohen succeeds former Pennsylvania Gov. Ed Rendell, who now joins the bond insurer’s Strategic Advisory Committee.

Municipal bond insurers are running close to last year's clip through the first three months of 2019, as the two active insurers wrapped $3.61 billion in 288 transactions. That compares with $3.61 billion 257 deals during the same period last year. The insurance penetration rate dipped to 4.8% from 5.9% at the end of the first quarter of last year.