Credit Rating & Financial
A Unique Utility Serving The Municipal Market
BAM is a mutual bond insurance company that operates for the benefit of its mutual members – the cities, states and other municipal entities that use our AA financial guaranty. Managed to maintain strong capital resources and ratings stability, BAM is not subject to pressure from equity holders for dividend payouts or stock buybacks.
Under our mutual charter, BAM can only insure municipal bonds. A primary goal is to achieve substantial interest cost savings for municipal issuers by offering a highly rated financial guaranty that investors will value because it provides certainty of scheduled payments of principal and interest and enhances market liquidity. BAM’s insured portfolio is backed with more than $1.1 billion of claims-paying resources, and that total grows as the company continues to insure new bonds.
BAM’s capital is further protected by first-loss reinsurance that will pay up to 15% of the face value of each insured issue. The combination of BAM’s low risk business, low single risk limits and strong capital resources results in exceptionally low operating leverage on an absolute and risk-adjusted basis.
To assure the highest level of financial transparency, BAM publishes financial statements providing balance sheet information. We also provide BAM Credit Profiles on each issue insured. The profiles are easily accessible by CUSIP, obligor, state or sector and updated at least annually. This information will assist broker-dealers in meeting disclosure requirements.
Financial Statements & Operating Supplements
BAM posts financial statements as they are filed with the New York Department of Financial Services.