Sentence examples for insure bonds from inspiring English sources
He has also grown more optimistic about the health of monoline insurers, firms that insure bonds, because the major players had shored up their financial positions.
We know about the problems of banks and we have had an inkling about the problems potentially facing monoline insurers - the companies that insure bonds - but the really big threat would be if the virus has spread to the $45tn£23tntn) market for credit default swaps, as it may well have done.
Bond insurers use their top credit ratings to insure bonds issued by municipalities and others against default.
Their central point is that MBIA is in a business that depends, to a large degree, on the market's confidence in its ability to insure bonds — and that Mr. Ackman's attacks are an effort to undermine that confidence.
The major stock indexes ended the day slightly below where they had started after reports that credit-rating agencies were poised to lower their ratings on companies that insure bonds containing packages of mortgages.
Deutsche Bank used the swaps to insure bonds on behalf of hedge funds and other clients, paying Gemstone VII premiums that would be passed on to investors like M&T.
Berkshire Hathaway jumped in the market in December and is seeking licenses to insure bond issues in all 50 states, and a spokesman for the insurance regulator said earlier this month that they were talking to other interested companies.
Finally, they failed to do their homework on the insurers' financial stability, continuing to rate insured bonds higher than the insurers' balance sheets warranted.
If you are more comfortable owning insured bonds, look for those guaranteed by Financial Security Assurance or Assured Guaranty.
MBIA, like many of its rivals, is expected to make big payouts in the future after insuring bonds linked to subprime mortgages.
Ratings agencies like Standard & Poor's, Moody's Investors Service and Fitch Ratings are paid a second time to evaluate the insured bonds.
