Financial Guarantees
Municipal FinanceU.S. Municipal Bond InsuranceNew Issues
Guarantees for New U.S. Municipal Bond Issues
The broad market acceptance of our Aaa/AAA/AAA guaranty translates into meaningful interest rate savings for bond issuers in both the competitive and negotiated markets, even for issuers rated as high as Double-A. The value we add comes not only from our guaranty but also from our ability to advise on the most efficient structure to meet an issuer's objectives.
We participate extensively in basic, high-quality sectors like state and school district general obligations, and we bring broad experience and exceptional structuring skills to complex transactions, including those involving swaps, forward agreements, options or other derivatives. Additionally, we are playing a leading role in bringing the techniques of public-private partnership finance to the United States.
We have the capacity through our own resources and our reinsurance partners to guarantee transactions with insured amounts in excess of $1 billion, subject to our single-risk guidelines, yet we routinely and efficiently underwrite transactions as small as $10 million. We welcome the opportunity to serve qualified issuers of every size in all U.S. states and territories.
To inquire about arranging insurance for a specific new issue, please send details to newmuni@fsa.com.
General Obligations
General obligations are backed by the full faith and credit of the municipal issuer. FSA insures G.O. bonds that are supported by a pledge to levy either unlimited or limited ad valorem property taxes to cover debt service.
Tax-Supported
We insure a range of special tax bonds, including sales tax bonds, hotel tax bonds, other non-ad valorem revenue bonds, special assessment bonds and tax allocation bonds; lease financings, such as lease revenue bonds and certificates of participation (COPs); and moral obligations, which are issued for state agencies or authorities with the implicit backing of the state, subject to appropriation.
Utility
FSA provides bond insurance and expert structuring assistance for large and small revenue bond financings in a range of sectors, including water and sewer, natural gas, electric power and resource recovery.
Health Care
We offer bond insurance to hospitals and health care systems that are market leaders providing essential services to the areas they serve.
Housing
FSA guarantees a broad range of single family and multifamily affordable housing issues. We insure tax-exempt and taxable issues in both the new issue and secondary markets. Both state and local housing finance agency issues are eligible, including federally insured multifamily issues.
Transportation
We insure both general airport revenue bonds (GARBs) and passenger facility charge (PFC) issues for major and selected regional airports. We also insure revenue bonds backed by tolls collected on roads, bridges and tunnels and, for mass transit financings, by fare-box revenues, motor fuel taxes and vehicle registration fees.
Education
FSA guarantees and helps to structure cost-efficient revenue bonds for public and private colleges and universities, as well as private primary and secondary schools with proven, sustainable franchises. For public institutions, bonds may be secured by general revenues or specific revenues from dormitory, dining, student activity or other fees. For private institutions, we guarantee tax-exempt and taxable revenue bonds, which may be issued directly by the institution or by state educational authorities.
