| 释义 |
municipal bond insurance Municipal bond insuranceAn insurance policy which guarantees payment on municipal bonds in the event of default .Municipal Bond InsuranceA guarantee that the principal and coupon on a municipal bond will be paid at the appropriate times. Municipal bond insurance is usually structured in such a way that a private organization such as a bank is the actual issuer of the municipal bond, rather than the municipality itself. The bank does this in exchange for a fee. Municipal bond insurance grants a higher credit rating to the bond.municipal bond insurance A guarantee from a third party that principal and interest will be paid to a bondholder. Municipal bond insurance is written by private corporations for a fee paid by issuers hoping to obtain higher ratings and lower interest costs. Investors purchasing insured bonds or insured trusts obtain increased safety at the cost of lower yields. |