Decisions are made by the underwriter for the use of credit enhancements with surety bond insurance companies
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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
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Fundamentals Of Economic Development Finance
ISBN: 9780615517247
2nd Edition
Authors: Susan Giles Bischak
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