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Abstract: 

This article sets forth a conceptual exploration of municipal bond portfolio insurance, proposed to be developed as an alternative insurance paradigm to traditional municipal bond insurance for single bond issues. The article describes bond insurance as the existing paradigm of insurance credit enhancement and then explores municipal bond portfolio insurance as an alternative paradigm, including suggestions for the structuring of portfolio insurance, the operation of portfolio insurance, the relationship between the portfolio insurer and the portfolio manager, the structuring of the duration of portfolio insurance and its relation to associated risks of default, and the structuring of insurance premiums and fees for portfolio insurance.

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Affiliations:  1: Phillips Lytle LLP.