Municipal Bond Forum
On Don’t Lose Sleep Over Bond Insurers Woes contd #5:
Q
I’m sure your read the recent Dow Jones article that suggests we are overpaying for insured munis and may actually get a higher yield, with no more risk, on A or better-rated paper that is not insured. The article also advises muni buyers to focus on the underlying rating of an insured bond and avoid them if they are not A rated or better. Most bond brokers never mention the underlying rating unless asked and emphasize that the AAA rating of an insured bond is mostly what matters. How do you feel about this in light of the recent events in the bond insurer arena?
A
James A. Klotz responds:
Excellent question. Please click here for a complete discussion of this issue.
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.