Sandbox - Government Hearings
- 1985 0617 - GOV - Options Market and the National Market System
- House - Committee on Energy and Commerce - Subcommittee on Oversight and Investigations
- An interesting question arising in third-party guaranteed defaults is what happens when the guarantor collapses
- When the letter-of-credit bank or insurance company goes under, or the corporate guarantor goes bankrupt, there is no more credit enhancement or guarantee on the bond issue.
- In these instances bondholders usually lose.
- Such was the case with the $1.6 billion of munis backed by Executive Life and the $600 million of housing issues backed by Mutual Benefit Life Insurance Company. (p150)
-- C. Richard Lehmann, President - Bond Investors Association From 1994 "The Handbook of Municipal Bonds" CHAPTER 33: Municipal Bond Defaults
1995 - GOV - DEBT ISSUANCE AND INVFSTMENT PRACTICES OF STATE AND LOCAL GOVERNMENTS - 968p
- House - Committee on Banking and Financial Services - SUBCOMMITTEE ON CAPITAL MARKETS, SECURITIES, AND GOVERNMENT SPONSORED ENTERPRISES