Based in Tucson, AZ, The Insurance House offers insurance coverage to residents throughout the community. We offer multiple insurance policies to help ensure that our clients are covered in every aspect of their lives. We look forward to establishing long-lasting relationships with each of our clients.
Companies need a security net when they issue bonds. Bonds insurance is an asset that provides a layer of security when companies issue bonds. Bonds insurance outlines the terms of the payment schedule to bondholders. If there is an issue with repayment, bond insurance helps prevent the credit rating from going down. In this aspect, bond insurance is very beneficial to investors.
Bond insurance also has an impact on the bond’s interest rate. Bond insurance also assists companies who are looking for investors. The policy makes it easier for investors to analyze the risks associated with bonds. The terms of the policy also impact the premium on the bond. Bond insurance may also improve the market liquidity of the asset. Investors are also protected if the company issuing the bond receives a rating downgrade. The policy primarily includes a specified guaranty.
Keep in mind that bond insurers usually only issue securities to companies that have high credit ratings. Insurers will also likely analyze the bond’s underwriting before choosing a policy. The bond insurance policy should also include collateral protection.
Consult With The Insurance House
Finding the right terms in a bond insurance policy can be a complicated process. However, we are committed to helping you find the right policy that will allow your company to thrive in the Tucson, AZ community. Contact our office today to learn more information.