Estimating the Signaling Benefits of Debt Insurance: The Case of Municipal Bonds
研究市政债券保险的需求，发现购买保险的发行人平均能降低新债发行成本，且净收益随债券信用质量下降而增加。
This paper examines the demand for municipal bond insurance in the context of a competitive signaling equilibrium model. The study compares the pricing of new bond issues that are insured to similar issues that are not insured. The results indicate that issuers who purchase bond insurance, on average, are able to reduce their new issue borrowing cost more than enough to offset the cost of the insurance premium. Furthermore, the net benefit to the issuer increases as the underlying credit quality of the bond declines.