Wrapping risk

Monolines

MBIA, along with other monoline insurers, plays an indispensable role in the finance industry. Since the sector was first established in the early 1970s to wrap – or enhance the credit – of municipal borrowers in the US, it has helped both a wide variety of issuers and investors. Issuers have gained from the AAA rating assigned to wrapped paper and the cost benefits that brings, while investors have been able to buy paper knowing that both the issuer and the monoline insurers would have to go