KBRA Releases Research - Coronavirus (COVID-19): Pandemic Fears Spur Market Demand for Bond Insurance
Kroll Bond Rating Agency (KBRA) releases research which highlights the shift in investor appetite for insured debt as one of the many knock-on effects of the coronavirus (COVID-19) pandemic. Bond insurance penetration spiked sharply in 1H 2020 to levels not seen since the global financial crisis.
The current environment may present financial guarantors an opportunity to grow their insured portfolios to replace legacy exposure run-off. While this would potentially bolster balance sheets and support future earnings potential, such a development would need to be balanced by adherence to conservative underwriting standards.
KBRA will monitor the new business writings of its rated FG universe as well as the impact of the demand for bond insurance on the municipal market and on the financial guaranty industry.
Click here to view the report.
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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