Municipal bonds finance nearly three-quarters of all public infrastructure in the U.S. Build America Mutual insurance maximizes the safety and stability of investing in U.S. municipal bonds and helps Cities affordably finance essential infrastructure like schools, water and sewer utilities, public buildings, roads, and more. That’s why Build America Mutual (BAM) is NLC’s preferred provider of financial guaranty insurance.
Since its 2012 launch, BAM has guaranteed more than $125 billion of bonds for more than 6,000 member-issuers from 49 states. BAM is rated AA with a Stable Outlook by S&P Global Ratings. BAM insurance delivers substantial interest cost savings for issuers of municipal bonds and durable protection against loss for municipal bond investors. As a mutual insurer, BAM is owned by and responsible to its members – the U.S. municipal bond issuers who have utilized BAM insurance for their bond sales. BAM member-issuers are represented on the Board of Directors.
Benefits to Cities, Towns and Villages
- Access a lower cost of financing for public debt ⏤ at the time of sale and in the future, when member–issuers benefit from the opportunity to apply a portion of their original bond insurance premium as a credit to reduce the cost of refinancing bonds.
- Improve transparency with BAM Credit Profiles – publicly available summaries of the underlying financial and economic strength of each bond BAM insures. BAM Credit Profiles are available for free on the BAM website and are updated annually.
- The BAM GreenStar program is the only green bond verification designed exclusively for municipal bonds that finance sustainable water and wastewater infrastructure, renewable energy, and energy-efficient buildings, and meet the requirements of the International Capital Market Association’s Green Bond Principles.
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