What are Guaranteed Investment
Contracts (GICs)
What are Guaranteed Investment
Contracts (GICs)?
There are many different types of Guaranteed Investment Contracts (GICs), but with respect to structured finance, we are referring to providers who help municipalities invest proceeds from bonds until the funds are required for a predetermined project. In some areas, muni-GICs are called funding agreements. Muni-GIC issuers tend to have relatively high credit ratings.
Major GIC issuers include: AIG, Bayerische Landesbank, Aegon,
AMBAC, MBIA, FSA, Royal Bank of Canada, Rabobank and GEFGS.