Over the past three years, the blurring of barriers between insurance and banking has created new players and new products that have greatly expanded the ability of project financiers to improve the credit quality of a transaction. Formerly, credit enhancement was available only in the form of letters of credit, and bond insurance available only for municipal bonds and investment-grade, asset-backed securities. Now, there are credit enhancement options that cover only segments of the risk in a transaction, and these products are available for noninvestment grade, single-asset transactions that include project finance. With the recognition of these products by rating agencies and the increasing sophistication of insurers, these products are likely to be significant if intermediaries emerge that can link the right projects with the right insurers.