The probability of a bondholder experiencing a loss on a bond we insure is much lower than for municipal bonds in general. Most of the municipal bonds that have defaulted would not even have qualified for Assured Guaranty insurance in the first place, because they were unrated, rated below investment grade, in bond sectors we exclude or otherwise ineligible.

Issuers report their financial condition to us regularly so we can spot emerging problems and work with issuers to solve them before they become serious. We often have ways to help that individual bondholders do not, such as waiving covenants when doing so allows an issuer to get back on the right track.

In the rare instances when a municipal bond issuer does not make a principal or interest payment in full on a bond insured by Assured Guaranty, we are obligated to make up the shortfall when the payment is due. Our guaranty is unconditional and irrevocable.

Assured Guaranty has approximately $11 billion in group claims-paying resources and, each year, approximately $375 million of investment income. Rating agencies, which regularly assess our financial strength, report that we have more capital than we would need even under their severely stressed economic scenarios.

No investor in Assured Guaranty insured municipal bonds has ever failed to receive timely principal and interest payments, even in cases of default such as those in Detroit, MI; Jefferson County, AL; Harrisburg, PA; Stockton, CA; and Puerto Rico. Our highest priority is to protect investors not just from losses but from any interruptions of cash flow.