The last time a bond insurer was rated AAA was in 2010 when Assured Guaranty was downgraded by S&P following the financial crisis of 2008. Active bond insurers today are not rated AAA but have dramatically improved their capital adequacy and underwriting practices.
This article addresses how to evaluate the financial strength and performance of bond insurers so you can decide if the benefits of their financial guarantees are worth accepting the lower yield of insured bonds.
municipalbonds.com
Joshua Hudson
Oct 17, 2018