American Municipal Bond Assurance Corporation

The American Municipal Bond Assurance Corporation is one of the largest municipal bond insurers in the United States. An offering that has been insured by the American Municipal Bond Assurance Corporation can usually mandate a higher price upon being issued, depending on the terms of the policy. An insurance policy through the American Municipal Bond Assurance Corporation can also increase a bond's marketability. In 1971, the predecessor to the American Municipal Bond Assurance Corporation, Ambac Assurance Corporation, wrote the first municipal bond insurance policy. The American Municipal Bond Assurance Corporation became a subsidiary of Citibank in 1985 and later the American Municipal Bond Assurance Corporation went public in 1991. That same year, the American Municipal Bond Assurance Corporation engaged into a joint venture with another large bond insurer, the Municipal Bond Insurance Association (MBIA), to form MBIA-AMBAC International. The generally accepted abbreviation for the American Municipal Bond Assurance Corporation is AMBAC.