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Monoline insurer or monoline wrap provider

An insurance company that takes on credit risk by providing guarantees on bonds and selling protection on ABS and CDO tranches. Monolines typically invest in investment grade exposures and benefit from triple A counterparty credit ratings. The five main monolines are Ambac, CIFG, Financial Guaranty Insurance Company (FGIC), Financial Security Assurance (FSA) and MBIA.