Decisions are made by the underwriter for the use of credit enhancements with surety bond insurance companies

Question:

Decisions are made by the underwriter for the use of credit enhancements with surety bond insurance companies and letters of credit from qualified banks. Credit enhancements, insurance or guarantees of repayment assist underwriters in securing higher bond ratings. Since COPs or COs typically carry a slightly higher interest rate than general obligation bonds, credit enhancements and letters of credit can minimize the downsize and impact on interest rate differentials. LO.1 

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: