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 our large municipal bond insurance department in our New York headquarters, we maintain a fully staffed western regional office in San Francisco.

First Half 2021 Results

Assured Guaranty’s performance led a strong municipal bond insurance market in the first half of 2021. Industry market penetration reached 8.4%, the highest first-half penetration in a decade. Year over year, the industry’s total first-half insured par was up 34%, while the total par issued in the municipal market increased by only 15%.

Assured Guaranty continued to see outstanding production during the first half of 2021, guaranteeing 58% of new issue insured par sold. The $11.1 billion we insured in the primary market was 34% higher than in the first half of 2020 and 73% more than in the first half of 2019, which was not affected by the pandemic. 

In the second quarter, Assured Guaranty continued to lead the bond insurance market with 52% of primary-market insured par sold. We guaranteed 292 transactions for a total of $5.5 billion in insured par. (Both our first half and second quarter insured par amounts above include our $312 million Summa Health insured transaction, which carried a corporate CUSIP number.)  

We continued to see heightened demand for our insurance, including on larger transactions, which typically signals interest from institutional investors. During the first half of 2021, Assured Guaranty selectively insured 21 transactions of $100 million or more in insured par, 13 of which were in the second quarter. We also continued to add value on double-A credits, insuring $809 million of par on 29 transactions with underlying ratings of AA by S&P and/or Aa by Moody’s during the second quarter, bringing our first-half production in this category to $2.3 billion on 56 deals.

In the taxable portion of the municipal bond market for the first six months of 2021, Assured Guaranty insured $3.6 billion of par sold on taxable bonds with municipal CUSIP numbers, out of the $5.4 billion of such bonds insured by the bond insurance industry. Additionally, we insured the $312 million of Summa Health corporate-CUSIP bonds, bringing the total taxable volume insured by Assured Guaranty to $3.9 billion.

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 July 21, 2021. 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.

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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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