Financial Guaranty Insurance
Plain English Definition: Financial guaranty insurance guarantees repayment of principal and interest on bonds or loans in case of default.
What Financial Guaranty Insurance really means for someone with an insurance policy
This insurance protects lenders and investors by ensuring they receive scheduled payments even if the borrower defaults.
Financial Guaranty Insurance Real World Examples
- Municipal bonds backed by financial guaranty insurance.
- Corporate bonds with insurance protection against default.
- Mortgage-backed securities insured against borrower default.