Municpal Bond Defaults

  • Bond Insurance
    • Ambac
    • MBIA
  • 2008 Financial Crisis
  • Orange County, California
  • Executive Life Insurance Company
  • Mutual Benefit Life
  • 1995 0726 and 0727 – GOV (House) – Debt Issuance and Investment Practices of State and Local Governments, Richard Baker (R-LA) – [PDF-1011p-GooglePlay]
    • Richard C. Lehman, President, Bond Investors Association
      • Chapter 33 – Municipal Bond Defaults – [Bonk: What is the Title of the Book?]
      • (p150) An interesting question arising in third-party guaranteed defaults is what happens when the guarantor collapses.
      • When the letter-of-credit bank or insurance company goes under, or the corporate guarantor goes bankrupt, there is no more credit enhancement or guarantee on the bond issue.
      • In these instances bondholders usually lose.
        • Such was the case with the $1.6 billion of munis backed by Executive Life and the $600 million of housing issues backed by Mutual Benefit Life Insurance Company.  
    • House – Committee on Banking and Financial Services – Subcommittee on Capital Markets, Securities, and Government Sponsored Enterprises