(Reuters) – New York state's financial regulator said on Monday that it had licensed the first-ever mutual municipal bond insurer, which expects to start underwriting small deals later this year.
Build America Mutual Assurance Co, or BAM, will focus on investment-grade muni bond issues of up to $75 million when it starts writing coverage in September, the New York Department of Financial Services said in a statement.
As a mutual, BAM will be owned by the issuers. The state said the company was capitalized with $600 million in initial financing and had the highest credit rating of any bond insurer in the country.
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