Global Structured Finance

Ambac is a global leader in financial guarantees and credit enhancement for issuers, asset managers, financial institutions and insurance companies. Through creative use of structured products and securitization technology, we tailor solutions that: reduce financing costs for issuers, facilitate the structuring and distribution of securities by investment bankers and improve liquidity for investors.

Adept at working with both traditional and non-traditional asset types and structures, our professionals take pride in our reputation for "out-of-the-box" thinking and timely, efficient execution.

Our Deal Guidelines

While each transaction is separate and distinct, there are some general parameters within which a deal must fall to be considered appropriate for review and consideration.

Investment grade rating by Moody's and Standard & Poor's
Minimum transaction size of $100 million
In project finance transactions, significant equity from known sponsors required on underlying project, completed project or highly-rated completion guarantee needed, and offtakes must be highly rated or diverse
No single name corporates
Generally, no foreign currency transfer and convertibility risk in developing markets.

Key Contacts

Student Loans

For nearly two decades, Ambac has worked with state agencies and private sector issuers, both for-profit and not-for-profit, to guarantee bond issues backed by student loan receivables. Ambac insures transactions financing both federally guaranteed and supplemental loans. We work with issuing clients of all sizes to guarantee bonds for complete term financings or for warehouse transactions providing interim funding.

Leasing & Asset Finance

Leasing and equipment trust certificates play a major role in the financing of large-scale assets such as power plants, rail cars and aircraft. Ambac’s innovative financial solutions enhance delivery of these assets through debt structures, credit support and deposit arrangements. Ambac’s experience includes lease financings of rail cars, power generating and distributions capacity and commercial aircraft, notably in connection with Enhanced Equipment Trust certificates.

ABCP Conduits

Commercial paper conduits increasingly rely on credit enhancement to strengthen their commercial securities offerings. Financial guarantee insurance from Ambac can help lower the overall cost of securitization and reassure commercial security investors.

Funding Vehicles

Ambac guarantees medium-term notes issued by two special purpose subsidiaries (the "MTN conduits"). The MTN conduits buy investment grade fixed income assets from issuers, often in coordination with Ambac-insured transactions, and issue notes backed by those assets.

For clients seeking financing, the MTN conduits provide a funding source beyond traditional investor groups. This can be especially valuable to issuers of complex transactions or newer structures: with a wide range of structured securities experience, Ambac can often assess and accept risks more quickly or readily than other investors. In addition, selling assets into Ambac's MTN conduits can assure confidentiality for transactions that utilize proprietary structures.

Structured Finance

Ambac focuses on financing risk from the Life, Property & Casualty, Specialty Insurance and Reinsurance markets. As a leader in this new area of the structured finance market, Ambac has pioneered a diverse range of transactions. Significant transaction categories include insurance securitizations and monetizations, insurance regulatory capital management, economic risk transfer, US XXX/AXXX financing, and structured insurance settlements.

Global Utilities

Utility markets around the world are well along the road to full deregulation. In this complex and continually changing environment, Ambac helps utility clients outside the U.S. meet their financing challenges and objectives. For a wide range of utility clients, Ambac provides financial guarantee insurance to lower borrowing costs and increase marketability of international utilities financing. In addition, Ambac has the expertise, knowledge base and experience to help utilities tailor their balance sheets through debt restructuring and balance sheet customization.

Secondary Structured Credit Markets

Ambac's Secondary Structured Credit Desk is a global effort dedicated to offering both the dealer and the buy-side communities customized insurance policies for existing structured credit exposures. Bids are prepared on a wide variety of assets classes from CDOs, Consumer and Commercial ABS, Project Finance, Infrastructure and PFI Issues. Our goal is to provide insurance solutions to illiquid issues, both credit stable and distressed. Typical deal size is below $125MM. With years of experience and dozens of trades successfully executed across the globe, our team is dedicated to providing our clients with competitive levels, fast turnaround and peace of mind during volatile market times. Secondary market insurance provides the same benefits that accrue to new issue insurance, including the non-cancelable insurance policy that is backed by over $14 billion of claims-paying resources.