Issuers that meet certain credit criteria can purchase municipal bond insurance policies from private companies. The insurance guarantees the payment of principal and interest on a bond issue if the issuer defaults. Bond ratings are based on the credit of the insurer rather than the underlying credit of the issuer. A municipal bond insurance policy is intended to result in significant interest cost savings, depending upon the issuers underlying credit and market conditions at the time of the bond sale. Interest cost savings are attributable to the higher bond rating as well as enhanced liquidity for insured bonds.

Address: 11710 Administration Drive, Suite 7, St. Louis, Missouri 63146
Telephone: (314) 423-2122
Fax: (314) 432-2393
Website: http://www.munibondadvisor.com/BondInsurance.htm