Finance: What is AMBAC?

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.

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Transcript

00:20

ghosts It is the american municipal bond assurance corporation And

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if you did something really bad in a former life

00:29

you have to come back and run this thing And

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

00:34

for bombs particularly munich bonds insurers underwriters investors and others

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pay a relatively small fee to ensure the bonds in

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which they invest and in return and back keeps a

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bunch of dough in their pockets ready to step in

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Should bond get close to the red line of not

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

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of deadbeat land Well am back is an actual publicly

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traded corporation ticker a mbc who was destroyed in the

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financial crisis of await no nine finally having to declare

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bankruptcy itself ironically in two thousand thirteen with all due

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irony inserted here and a little bit of snicker it

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emerged from that mass with new management and vision and

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a massive infusion of cash onto its balance sheet Will

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am back Is sort of like the crazy uncle with

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a bunker made of concrete thirty feet underground in central

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new mexico waiting for that big one Just to be

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