Products

1.Reinvestment of Bond Proceeds
mGIC assists issuers in the reinvestment of bond proceeds for construction funds, reserve funds, and bond funds in custom-designed Investment Agreements.

2.Swaps/Derivatives
Our consultants are highly experienced with derivative product applications and can provide the specialized services that are critical for dealing
with the complexities of the municipal swap market.

Reinvestment of Bond Proceeds

mGIC assists issuers in the reinvestment of bond proceeds for construction funds, reserve funds, and bond funds in custom-designed Investment Agreements such as:.

  • Repurchase Agreements

  • Forward Purchase Agreements

  • Guaranteed Investment Contracts

  • Put Agreements


We also perform competitive bidding services for issuers purchasing open-market securities for their refunding escrow portfolios, including arranging for specialized investment agreements to eliminate escrow inefficiencies.

Depending upon the Issuer’s preferences, Investment Agreements can take many different forms. In arranging Investment Agreements for clients, we focus on: safety, liquidity, and yield.

Swaps/Derivatives

mGIC professionals are expert in the workings of derivative products, and can provide the specialized advisory and analytic services that are critical for clients in dealing with the complexities of the municipal swap market. Municipal derivatives transactions are complex, individually tailored “over the counter” transactions and it is often difficult for an issuer to compare structures or pricing levels.

The types of transactions we have executed cover the spectrum of municipal derivatives transactions and include:

  • Floating-to-Fixed Interest Rate Swaps

  • Fixed-to-Floating Interest Rate Swaps

  • Basis Swaps

  • Forward Bond Purchase Agreements


mGIC’s involvement in a derivatives transaction allows an issuer to effectively “decouple” its derivative from its bond issue. In using our services, many Issuers have felt the freedom to pursue and select derivatives solutions independently of the bond underwriting process, and thus they extract the most favorable terms, structure and pricing from each side of the transaction (bonds and derivatives).