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What We Insure

MAC guarantees primarily small and medium-size investment grade U.S. municipal bonds in select categories such as G.O. and tax-backed bonds and public electric, water, sewer and transportation revenue bonds.

Disciplined Underwriting and Risk Management

Subject to the additional constraints of its classification and size guidelines, MAC employs Assured Guaranty’s proven U.S. public finance credit selection and underwriting criteria.  At a minimum, insured transactions must meet MAC’s internal standard for investment-grade underlying credit quality.  We also require one or more rating agency’s published or unpublished rating assessments of the transaction.

We consider:

  • the nature and priority of the obligation and security provided (for example, the full faith and credit of the issuer, a pledge of specific revenues or a pledge of taxes)
  • the essential nature and exclusivity of the franchise or service
  • the financial condition and liquidity of the issuer, e.g., pension funding obligations and exposure to variable rate debt and related interest rate swaps
  • economic and demographic conditions and trends that will affect the issuer's ability to pay its debt
  • litigation claims against the obligor, and
  • the political and legal environment.

See our current insured portfolio.