Definition of monoline
A monoline is an insurer writing only a single line of insurance contracts - such as credit insurance (similar to a financial guarantee). Securitisation transactions often make use of monoline insurance contracts as credit enhancements. Monolines, in effect, insure against the risk that a bond will default, allowing the rating of the monoline to be assumed by the debt security. The issuers of the debt security pay the monoline a fee for the insurance and in return can expect to pay a lower interest charge due to the high credit rating. Estimates suggest that the monoline insurers guarantee about $2.4 trillion of bonds.
A Leading provider in financial training for non-financial people, corporate communications, financial PR and Investor Relations.
We've spent years developing practical, interesting, engaging ways for people to learn - and have developed multiple ways to make the learning stick. Most importantly, people leave our courses with the tools in place to use what they have learnt back at work - and make a difference.
Our most popular online courses include: