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Finance: What is AMBAC? 9 Views


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Description:

What is AMBAC? AMBAC stands for American Municipal Bond Assurance Corporation. It provides insurance for municipalities that sell muni bonds, such that they are able to ensure their investors that they are protected against default.

Language:
English Language

Transcript

00:00

Finance allah shmoop what is am back and back You

00:08

know with that from poltergeist You know the scene where

00:11

the ghost appears for the tv set You know the

00:13

movie steven spielberg and all that you are Well guess

00:16

not Well ambac stands for something fastly less exciting than

00:20

ghosts It is the american municipal bond assurance corporation And

00:26

if you did something really bad in a former life

00:29

you have to come back and run this thing And

00:31

what is it Well it's basically a life insurance company

00:34

for bombs particularly munich bonds insurers underwriters investors and others

00:38

pay a relatively small fee to ensure the bonds in

00:41

which they invest and in return and back keeps a

00:44

bunch of dough in their pockets ready to step in

00:47

Should bond get close to the red line of not

00:49

being able to Hey it's interest knocking on the door

00:51

of deadbeat land Well am back is an actual publicly

00:55

traded corporation ticker a mbc who was destroyed in the

00:59

financial crisis of await no nine finally having to declare

01:03

bankruptcy itself ironically in two thousand thirteen with all due

01:07

irony inserted here and a little bit of snicker it

01:10

emerged from that mass with new management and vision and

01:13

a massive infusion of cash onto its balance sheet Will

01:16

am back Is sort of like the crazy uncle with

01:18

a bunker made of concrete thirty feet underground in central

01:21

new mexico waiting for that big one Just to be

01:24

sure humans remain around to populate the earth For the 00:01:28.178 --> [endTime] you know unclear Future doctor Strange Whoa

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