be certain your assets are properly protected
Safeguarding investments by providing financial guarantees for bondholders against default or non-payment.
Bond insurance, also known as financial guarantee insurance, is a type of insurance product that guarantees the repayment of principal and interest on bonds in the event of default by the issuer. It provides an additional layer of security for bondholders by transferring the risk of default from the bondholder to the insurance company.
Bond insurance is commonly used in municipal bonds, where the issuer is typically a government entity or a municipality. By obtaining bond insurance, these issuers can enhance the creditworthiness of their bonds, potentially leading to lower interest rates and increased demand from investors.
In the event of a default, the bond insurer will step in and make the principal and interest payments to the bondholders. This helps protect bondholders from the risk of non-payment and can potentially improve the overall credit rating of the insured bonds.
It's important to note that the availability and terms of bond insurance can vary depending on the insurance company and the specific bond issuance.
Contact our knowledgeable team to explore our range of policies and get a quote tailored to your specific needs.
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