U.S. Public Finance

Assured Guaranty is the leading provider of municipal bond insurance in the United States.

Our municipal credit enhancement products include:

  • Municipal bond insurance policies covering principal and interest, for both new issues and those already trading in the secondary market
  • Surety policies that take the place of cash-funded reserves in municipal bond transactions

We guarantee a wide range of municipal bond types supported either by tax revenues or revenues from essential public projects or services. We insure both tax-exempt and taxable municipal bonds.

While we have two platforms – AGM, insuring only public finance transactions; and AGC, a diversified provider – we are one team, applying a uniform underwriting standard and dedicated to the highest level of customer service. In addition to the large municipal bond insurance department in AGM/AGC’s New York headquarters, we maintain a fully staffed western regional office in San Francisco.

First Quarter 2022 Results

During the first quarter of 2022, AGM insured an industry-leading $5.1 billion of U.S. public finance par in the primary and secondary markets, with a total count of 224 transactions. 

We saw tremendous gains in our secondary market par insured, with a 500% increase in par insured year over year during the first quarter. We believe this indicates that investors were actively seeking the security of our guarantee to protect portions of their fixed income portfolios from the potential effects of the economic stress and market volatility in the current environment. 

Total primary market volume utilizing bond insurance during Q1 2022 was 8.5% of par issued, in line with the annual par penetration rate of 8.2% of par issued that we saw in 2021, which was the highest rate in 12 years.  

An important trend in recent years has been the use of our guaranty to help support some of the municipal bond market’s largest transactions, which we believe indicates growing institutional demand for our guaranty and the relative price stability and increased market liquidity our insurance can potentially provide. AGM’s insurance of 58% of primary market insured par in Q1 2022 included seven large transactions with insured par over $100 million, including a $755 million transaction for the Metropolitan Washington Airports Authority, a $546 million transaction for the Department of Airports for the City of Los Angeles, and a $272 million transaction for the Louisville/Jefferson County Metro Government.

Among AA credits (defined as those credits rated in the double-A category by S&P or Moody’s on an uninsured basis), AGM insured 26 transactions for a total of $535 million of insured par during the quarter, reflecting what we believe is the market’s recognition of the value our guaranty can add even to highly rated credits.  

2021 Results

During 2021, total market volume utilizing bond insurance increased to 8.2% of par issued, the highest rate over the past 12 years and up from 7.6% during 2020 and 5.9% during 2019. 

Assured Guaranty’s production was the leading force behind the 57% growth in annual insured par issued since 2019, as we insured approximately 59% of insured par in 2020 and 61% in 2021, which was our highest market share since 2013. Our $23.1 billion of insured new issue volume in 2021 (including $462 million from municipal bonds with corporate CUSIPs), was $2.6 billion more par than we insured in 2020 and reflected 1,078 individual transactions.  

During fourth quarter 2021, Assured Guaranty insured 250 transactions with insured par of $5.2 billion, garnering 61% of insured par issued.  

An important trend in recent years has been the growing use of our guaranty to help launch some of the market’s largest transactions. We provided $100 million or more of bond insurance for each of 48 large issues brought to market in 2021, up from 39 transactions in 2020 and 22 in 2019.  Among our larger transactions in 2021 were three that were honored as Deals of the Year in their respective categories by The Bond Buyer. These included the overall winning Deal of the Year, Miami-Dade County’s Seaport revenue refunding issue, and the Far West Region and Health Care Financing Deals of the Year, each of which carried an underlying rating in the “A” category from one or more rating agencies. 

In addition to the large issues we guaranteed in 2021, we also provided bond insurance for hundreds of smaller issues, including 450 small enough to be bank qualified. We delivered value for both large and small transactions, negotiated transactions, and competitive-bid transactions in many market segments and across a wide ratings spectrum. Significantly, we continued to add value on credits with underlying ratings of AA by S&P and/or Aa by Moody’s, insuring 109 transactions totaling $3.53 billion of insured par in this category during 2021. 

2020 Results

The financial uncertainty brought on by the COVID-19 pandemic caused a renewed interest in the value provided by our product in the U.S. public finance market.  Industry insured penetration, which had remained below 6.0% for the past several years, increased to 7.6% of par on the year, with some months exceeding 9%.  Assured Guaranty, as the leader in the industry, insured 58% of the insured volume, guaranteeing $20 billion of primary-market volume across nearly 1,000 transactions.

During 2020, Assured Guaranty provided insurance on $100 million or more of par on 39 transactions, up from 22 such transactions in the prior year. In our largest 2020 transaction, we insured $726 million of par for Yankee Stadium LLC.

In the case of AA credits (defined as those credits that have a double-A category rating from S&P or Moody’s on an uninsured basis), Assured Guaranty insured a total par of $2.5 billion in 2020, which is $1 billion more than we insured last year in this category. 

Our production in healthcare finance was strong, as we guaranteed $2.7 billion of primary-market par on 25 tax-exempt, municipal taxable, and corporate CUSIP transactions with underlying ratings in the single-A and triple-B categories. As the only provider of bond insurance for healthcare revenue bonds, Assured Guaranty wrapped 9.7% of all healthcare revenue bonds issued during 2020, regardless of underlying ratings.  Additionally, we guaranteed $464 million of healthcare par across 39 different secondary-market policies. 

Notably, for the first time in seven years, we insured financings for private higher education institutions, including two for Howard University totaling $321 million in insured par.

Also in the primary market, we insured $6.8 billion of par on taxable municipal bonds, up from $3 billion in 2019 and $1.5 billion in 2018. The increase reflected growing appreciation of our guaranty among U.S. taxable investors and non-U.S. investors.

Forward-Looking Statements
Any forward-looking statements made on this page reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty’s forward-looking statements, including but not limited to those related to the market for its credit protection products and to the financial health and resilience of the obligors underlying its insured portfolio, could be affected by the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response (including governmental responses that could reduce demand for the Company’s credit protection products), and the global consequences of the pandemic and such actions, and other factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission, which are available on its website, and other risks and uncertainties that have not been identified at this time. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of April 13, 2022. Assured Guaranty does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.







Contact Information

  • William J. Hogan
  • Senior Managing Director
  • 212 408 6006
  • Email
  • Christopher Chafizadeh
  • Senior Managing Director
  • 212 339 0832
  • 914 420 6530
  • Email

All U.S. Public Finance Contacts

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