Terminology
Bond insurers are sometimes also referred to as "financial guaranty insurance companies" or "financial guarantors." Companies whose sole line of business is providing a particular type of insurance, in this case bond insurance, are called monoline insurers. Note that the insurance term “monoline” means only that these companies do not have other insurance lines, such as life or property/casualty. It does not mean they operate only in one securities market, such as municipal bonds, as the term is sometimes misconstrued.
Bonds insured by these companies are sometimes said to be "wrapped" by the insurer.
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