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.

Q1 2021 Results

The bond insurance industry performed well during first quarter 2021 in comparison with the total municipal bond market. Insured par was up almost 70% while total market par was up less than 19% for the first quarter year-over-year. Insured penetration was 7.8%, reflecting strong demand for bond insurance, similar to what was seen during 2020.

Assured Guaranty’s first-quarter primary market insured par was $5.5 billion, almost two-and-a-half times our insured par in last year’s first quarter, and our transaction count was 252, up 57%. This comparison partly reflects the market disruption caused by pandemic concerns in the first quarter of 2020, but in what may be a more meaningful comparison, our first-quarter production was also 19% higher than in the fourth quarter of 2020. Our first quarter 2021 market share of over two-thirds of the insured market by par was our highest quarterly share since fourth quarter of 2013.

We continued to benefit from institutional investors’ preference for Assured Guaranty’s insurance on larger transactions. During the quarter, the eight transactions we insured with $100 million or more in insured par totalled $2.25 billion. Additionally, we continued to add value to double-A credits in the first quarter, insuring $1.5 billion of par on 27 deals rated AA by S&P and/or Aa by Moody’s, including seven in the competitive bid market totaling $276 million of insured par. 

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 22, 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.

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