Real-Time Quotes and Execution Available for Over 9,500 Approved Municipal Credits
HAMILTON, Bermuda, Dec 09, 2013 (BUSINESS WIRE) — Municipal Assurance Corp. (MAC), a bond insurer within the Assured Guaranty group of companies (Assured Guaranty), today began providing real-time bond insurance quotes, as well as the ability to request the purchase of MAC insurance, on secondary market trades placed through the electronic trading platform of TMC Bonds LLC (TMC). In providing this service, MAC joins its affiliate Assured Guaranty Municipal Corp. (AGM), which introduced secondary market municipal bond insurance to TMC in 2011.
“We are pleased to offer TMC users the ability to attach MAC bond insurance to eligible trades with just a mouse-click,” said William B. O’Keefe, Senior Managing Director for Municipal Marketing. “While MAC only began writing direct bond insurance earlier this year, it has the characteristics of a well-established financial guaranty company, with built-in earnings and all the experience and human capital of Assured Guaranty, the leading provider of muni bond insurance.”
MAC was launched in July 2013 to guarantee only U.S. municipal bonds in the most well-understood bond sectors, such as general obligations, tax-backed issues and public electric, water, sewer and transportation revenue bonds. At September 30, 2013, MAC had $1.5 billion in claims-paying resources and a $108 billion direct and assumed insured portfolio, which generates predictable revenue from its $688 million of unearned premiums.
Rated AA+ (stable outlook) by Kroll Bond Rating Agency and AA- (stable outlook) by Standard & Poor’s Ratings Services, MAC may insure primary offerings in 42 states and the District of Columbia under its current licenses. Through TMC, registered TMC users may obtain secondary market MAC insurance on approved municipal bonds issued in all 50 states.
MAC currently has secondary market insurance capacity available for over 9,500 municipal credits. Registered users of TMC’s electronic trading platform can obtain MAC or AGM bond insurance quotes on approved issues by entering the CUSIP number of bonds they want to insure.
“TMC’s broad market reach makes MAC insurance highly accessible,” said Mr. O’Keefe. “It is particularly efficient for executing smaller size trades, with MAC and AGM insuring par amounts of $100,000 or more.”
MAC is owned jointly by its affiliates AGM and Assured Guaranty Corp. (AGC), the only two companies that have continued to write municipal bond insurance before, during and since the global financial crisis of 2008. MAC shares their management, underwriting discipline, experience in surveillance and remediation, and established accounting, legal and information technology infrastructure.
Assured Guaranty Ltd., the ultimate holding company for the Assured Guaranty group, including MAC, AGM and AGC, is a publicly traded Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com and MACmunibonds.com.
Municipal Assurance Corp. License Status: MAC is not licensed and authorized to transact insurance business in Alabama, California, New Mexico, North Carolina, Oregon, Washington and Wyoming, and the insurance products and services described in this communication may not be available to all potential customers or investors. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any insurance product or service in any jurisdiction where MAC is not licensed and authorized to write insurance.
PRESS RELEASE
Dec. 9, 2013, 12:01 p.m. EST