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MBIA OFFERS MUNICIPAL INVESTMENT MANAGEMENT SERVICE FOR BOND PROCEEDS

 ARMONK, N.Y., Aug. 9 /PRNewswire/ -- MBIA Inc. (NYSE: MBI), the holding company of the nation's leading insurer of municipal securities, will now provide state and local governments with investment-management services for their municipal bond proceeds through a newly established subsidiary, MBIA Investment Management Corp. (MIMCO).
 MIMCO will provide municipal issuers with a liquid, high quality investment alternative for bond proceeds. The company's municipal investment agreement offers a guaranteed interest rate and will be insured by Municipal Bond Investors Assurance Corporation. The new venture is managed by Peggy D. Garfunkel, MBIA vice president and manager of new products and new businesses.
 "Offering Triple-A quality municipal investment agreements is part of MBIA's continuing commitment to increase the efficiency of public finance. This new product takes full advantage of MBIA's pre-eminent position in the municipal marketplace," said James E. Malling, MBIA executive vice president of corporate marketing and new products.
 Municipalities often need to invest and safeguard the proceeds of their bond issues. MIMCO's investment agreements are more liquid than other fixed-rate investments such as bank certificates of deposit and offer a higher yield than other fully liquid investments such as money market funds. MIMCO will tailor its investment agreement to the needs of the bond issuer. Gabelli-O'Connor Fixed Income Management Co. of Greenwich, Conn., will provide funds management for MIMCO.
 MBIA Inc., through its wholly owned subsidiary, Municipal Bond Investors Assurance Corporation, is the country's leading insurer of municipal bonds, including new issues and bonds traded in the secondary market. The company also guarantees asset-backed transactions and high- quality obligations offered by qualified financial institutions, and it provides investment management services for school districts and municipalities. MBIA Corporation has a claims-paying rating of Triple-A from Moody's Investors Service Inc. and Standard & Poor's Corporation, and all municipal bonds insured by MBIA receive these ratings.
 -0- 8/9/93
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI)


CO: MBIA ST: New York IN: FIN SU:

CK -- NY031 -- 0678 08/09/93 10:37 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
Words:331
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