AFGI members are increasingly involved in insuring international securities in both the asset-backed and infrastructure finance markets. The first insured European bonds, residential mortgage-backed securities, were issued in the U.K. in 1986; since then bonds have been insured worldwide.

Today, AFGI firms insure a wide range of new issue and secondary market transactions, including infrastructure and project financings, local government issues, asset securitizations, structured finance transactions, and sovereign and quasi-sovereign debt.

The popularity of financial guaranty insurance around the world stems from the benefits it provides global capital market participants, such as lower borrowing costs, broader investor appeal, cross-border access for investors, and reduced volatility of cost of funds through stable trading spreads. Insured securities appeal to a wide range of investors, increasing the marketability of issues for large, well-known entities as well as for smaller, less frequent issuers.

From international offices in Australia, Bermuda, France, Italy, Japan, Singapore, Spain and the United Kingdom, AFGI firms have reached nearly every corner of the globe with their insurance products. Total par value of outstanding international securities insured by AFGI firms exceeds $295 billion compared to $91 billion outstanding in insured international securities in 2000.