Investment guarantee companies have two businesses: investment business and guarantee business. In the investment business, because bonds are traded in the exchange and inter-bank market, mainly in the inter-bank market, investment guarantee companies cannot trade without the qualification of inter-bank market trading, and the bonds themselves have low returns, so they are generally used as short-term fund management business. If it is long-term, it needs to combine trust and leverage to have a suitable rate of return.
In terms of guarantee business, at present, many guarantee companies act as guarantors of corporate bonds, medium-term notes and SME collective bonds/notes.
The "mortgage business" mentioned upstairs refers to financing guarantee, and now financial guarantee has also increased in China. In the United States, financial guarantees are generally single-line insurance companies, such as MBIA.