DEFINITION of 'Monoline'

A business that focuses on operating in one specific financial area. The main advantage of monolines is that these companies have specialized skills and provide expertise beyond what can usually be expected from companies that businesses are spread across many different financial areas.


For example, monoline insurers give investors and issuers the confidence to participate in the market by providing liquidity and financial protection. Without fully understanding the entire system and how it all comes together, a company is unable to provide its customers with quality service. Due to the expertise that monoline companies have in the industry, they are able to reduce operating cost, enhance customer service and evaluate/manage risk much more efficiently.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Investment Ideas

    Specific views, plans or ideas on ways to invest money effectively. ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Monoline Insurance Company

    An insurance company that provides guarantees to issuers, often ...
  5. Operating Expense

    A category of expenditure that a business incurs as a result ...
  6. Cost Test

    A standard test applied to a process to determine if the net ...
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