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Guarantee repayment of principal and increase your credit rating when issuing bonds. Talk to an agent today!
Bond insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default. Bond issuers will buy this type of insurance to enhance their credit rating in order to reduce the amount of interest that it needs to pay and make the bonds more attractive to potential investors.
Bond insurance is sometimes also known as financial guaranty insurance.