Safeguarding U.S. Public Finance
with Municipal Bond Insurance
Build America Mutual Assurance Company is a monoline insurer dedicated to promoting financial stability and investment confidence in the U.S. municipal bond market. We provide principal and interest payment guarantees for municipal bonds, lowering borrowing costs for issuers and protecting investors against losses.
Our Core Services
We focus exclusively on municipal bond insurance, providing unmatched expertise and the financial strength to ensure the timely repayment of principal and interest. Our services support public sector issuers and institutional investors across all U.S. states and the District of Columbia.
How to Choose and Apply for Bond Insurance
Selecting the right municipal bond insurance partner is a strategic decision for both issuers and investors. Here’s how to proceed with Build America Mutual Assurance Company:
- Evaluate Your Needs: Consider the size, type, and public purpose of your municipal issue to determine if insurance will create meaningful value by reducing interest expense and appealing to a broader investor base.
- Contact Us for a Preliminary Assessment: Reach out with your bond details to discuss eligibility and receive initial feedback on our assessment process and requirements.
- Obtain a Formal Proposal: Submit necessary documentation for underwriting. We will conduct credit analysis, review financial data, and structure a tailored insurance proposal.
- Documentation and Closing: Upon acceptance, legal documentation is finalized to include our insurance commitment in your bond structure. Closing is coordinated with your bond counsel and underwriter.
- Ongoing Support: Our team remains available throughout the bond’s life to support investors and assist issuers with any questions regarding payment claims or monitoring.
Who Benefits from Municipal Bond Insurance?
Preparing for Bond Insurance
Both issuers and investors can benefit from understanding the key steps required to secure municipal bond insurance and ensure a smooth process:
- Gather Documentation: Issuers should prepare recent financial statements, bond documents, legal opinions, and prospectuses for underwriting review.
- Define Bonds and Structure: Clearly identify the series, amounts, purposes, and any security provisions of the municipal issue.
- Evaluate Creditworthiness: The underwriting process will consider credit ratings, debt service coverage, tax base strength, and fiscal controls.
- Consult Your Advisors: Bond counsel or financial advisors can help coordinate documentation and communication.
Scope and Jurisdiction
Build America Mutual Assurance Company is registered in the State of New York and licensed to provide bond insurance in all 50 U.S. states and the District of Columbia. Our insurance covers a wide array of municipal bonds, including:
- General obligation bonds
- Revenue bonds (utilities, transportation, healthcare, higher education, etc.)
- Tax-backed, lease-backed, and public improvement bonds
- Refinancing and refunding bonds
Our Financial Strength
Our obligations to policyholders are backed by strong financial reserves and a robust capital framework. Build America Mutual holds an “AA/Stable” rating from S&P Global Ratings—a testament to our ability to meet our commitments and provide long-term assurance to clients and investors.
About Build America Mutual Assurance Company
Build America Mutual Assurance Company (“BAM”) is the first mutual insurer exclusively dedicated to the U.S. municipal bond sector. As a mutual company, we are owned by our members—U.S. municipal bond issuers—ensuring our interests are aligned with those of the public sector. Our executive team and underwriters bring extensive experience in municipal finance, risk analysis, and credit enhancement.
BAM operates with transparency, strong governance, and a mission to lower financing costs for governments while enhancing the confidence of public finance investors nationwide.
Frequently Asked Questions
- What is municipal bond insurance?
- Municipal bond insurance is a financial guarantee that ensures timely payment of principal and interest to investors—even if the issuer experiences fiscal difficulties.
- Who can purchase municipal bond insurance?
- Typically, public entities issuing municipal securities obtain insurance at issuance, but in some cases, holders of outstanding bonds may seek secondary market insurance.
- What does the AA/Stable rating mean?
- S&P’s AA/Stable rating indicates very strong capacity to meet financial commitments and provides assurance to issuers and investors regarding BAM’s creditworthiness.
- Is BAM’s insurance available nationwide?
- Yes. We are licensed to provide bond insurance in all 50 U.S. states and the District of Columbia.
- How does BAM help lower municipal borrowing costs?
- By attaching insurance to a bond issue, public entities can access lower interest rates from investors who value the security our guarantees provide.
- How do I begin the application process?
- Contact us with the details of your municipal bond issue, and our team will be happy to map out the next steps and documentation required.