USAAlso known as monoline insurers.This is an insurance company that guarantees the timely repayment of bond interest and principal in exchange for insurance premiums. When a bond issuer defaults, the monoline is obligated to make all interest and principal payments when due (the underlying obligation is not, however, accelerated). These companies originally only guaranteed bonds issued by municipalities. However, their business expanded to include other financial products such as project bonds (bonds issued by a project company in a project finance transaction) and collateralized debt obligations (CDOs). As a result of the 2007 subprime mortgage crisis, the credit rating of many monolines was downgraded because of their exposure to mortgage backed securities, undermining their ability to guarantee financial products. These insurance companies are called monolines because they underwrite only financial products. They do not provide insurance products such as life, property or casualty insurance. A bond that is guaranteed by a monoline is known as a wrapped bond.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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Monoline — Monoline, s. Setzmaschine, S. II … Meyers Großes Konversations-Lexikon
Monoline — Rehaussement de crédit Le rehaussement de crédit est une opération financière par laquelle un établissement financier spécialisé, appelé rehausseur de crédit (ou monoline en anglais) apporte sa garantie à un organisme (public ou privé) qui émet… … Wikipédia en Français
Monoline — A business that focuses on operating in one specific financial area. The main advantage of monolines is that these companies have specialized skills and provide expertise beyond what can usually be expected from companies that businesses are… … Investment dictionary
monoline — noun a) A company operating in only one industry or line of business; often specifically a bank specializing in credit card issuance. b) An insurer specialized in insuring investment grade securities against loss. See Also: monorail, monotype,… … Wiktionary
monoline — mono·line … English syllables
monoline — I. “+ adjective Etymology: mon + line (n.) : having or relating to a single line: as a. : writing only one main branch of insurance compare multiple line b. : monorail … Useful english dictionary
Monoline insurance — Monoline insurers (also referred to as monoline insurance companies or simply monolines ) guarantee the timely repayment of bond principal and interest when an issuer defaults. They are so named because they provide services to only one industry … Wikipedia
monoline insurer — UK US noun [C] (also monoline) FINANCE, STOCK MARKET, INSURANCE ► a company that offers insurance against bonds not being paid back: »Home equity loan asset backed issuers routinely use insurance guarantees from monoline insurers … Financial and business terms
monoline insurer — Specialist insurer whose sole business is the provision of financial guarantee insurance. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
Monoline Insurance Company — An insurance company that provides guarantees to issuers, often in the form of credit wraps, that enhance the credit of the issuer. These insurance companies first began providing wraps for municipal bond issues, but now provide credit… … Investment dictionary