Build America Mutual is a unique insurance company that's changing the game for infrastructure projects in the United States. It was created by the U.S. Department of Transportation to provide a low-cost, high-quality insurance option for public-private partnerships.
The company's mission is to provide innovative insurance solutions that help bring critical infrastructure projects to life. This mission is driven by the need to improve America's infrastructure, which has been a pressing issue for decades.
By providing a reliable source of insurance, Build America Mutual is helping to reduce the risk associated with infrastructure projects, making it easier for private companies to partner with the government to build roads, bridges, and other critical infrastructure. This is a game-changer for the industry.
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What is Build America Mutual
Build America Mutual is a private company that provides financial guarantees to support the issuance of municipal bonds. It was created to address the challenges faced by the municipal bond market.
The company is owned by the American Financial Group, which is a subsidiary of the Federal Reserve. This unique ownership structure allows Build America Mutual to leverage the expertise and resources of the Federal Reserve to support the municipal bond market.
Build America Mutual's financial guarantees help to reduce the risk associated with municipal bond investments, making them more attractive to investors.
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NLC Honors with Service Award
Build America Mutual (BAM) was recognized with the NLC Distinguished Service to Cities Award in 2016 for making a significant contribution to building stronger, more innovative and resilient cities and towns.
The award is given annually to a partner of the National League of Cities for making a significant contribution to building stronger, more innovative and resilient cities and towns.
BAM was recognized for the cost savings it has provided to its member cities and towns by guaranteeing their municipal bonds.
The company has insured more than $30 billion of bonds for over 3,000 communities since its establishment in 2012.
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BAM's work in partnership with the NLC's Cities Lead campaign on city infrastructure helped to provide added value to NLC member cities.
By buying BAM insurance, cities and towns with lower credit ratings can achieve an upgrade on their bonds, which translates to a lower interest rate and savings over their life of their transactions.
The bonds insured by BAM carry a rating of AA with a stable outlook by S&P Global Ratings.
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Objective
Build America Mutual was created to provide a unique solution for municipal bond issuers, allowing them to share risk and stabilize their finances.
The mutual's objective is to provide a stable source of funding for municipal bond issuers, helping them to manage their financial risks and maintain their credit ratings.
By doing so, the mutual aims to promote economic growth and stability across the United States.
Frequently Asked Questions
What is the rating of build America Mutual?
Build America Mutual (BAM) is rated AA with a Stable Outlook by S&P Global Ratings, indicating a high level of financial strength and stability. This rating provides assurance to investors and issuers alike.
What are build America bonds used for?
Build America Bonds are used to finance infrastructure projects, providing state and local governments with lower borrowing costs. They help fund capital expenditures, such as roads, bridges, and public buildings.
Sources
- https://en.wikipedia.org/wiki/Build_America_Mutual
- https://www.nlc.org/post/2017/01/10/nlc-honors-build-america-mutual-bam-with-service-to-cities-award/
- https://www.insurtechinsights.com/build-america-mutual-bam-insurance-facilitates-398-million-connecticut-baby-bond-trust/
- https://www.invesco.com/us/financial-products/unit-trusts/product-detail
- https://fi-insights.bdamerica.org/municipal-green-bonds-poised-for-more-growth---build-america-mutual
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