Municipal Bond Forum
Is rating important on insured municipal bonds?
Q
If I buy only insured muni bonds, do I still need to be concerned with the bonds’ rating?
A
James A. Klotz responds:
As an investor, you should always be the one who determines the degree of security you are comfortable with, based on your personal risk tolerance.
As you know, most “investment-grade” rated municipal bonds provide an adequate degree of security, as evidenced by their very low default rate.
Insurance provides an additional layer of credit quality, but it is always prudent to evaluate the underlying security.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.