Industry WIKI

Credit enhancement is the improvement of the credit profile of a structured financial transaction or the methods used to improve the credit profiles of such products or transactions. It is a key part of the securitization transaction in structured finance, and is important for credit rating agencies when rating a securitization.

Financial Guaranty Insurance Company (FGIC) is an American monoline bond insurer established in 1983. It faced significant financial difficulties in 2008 which affected its ability to write new business.