Municipal Bond Forum
Uncovering muni values after Hurricane Sandy
Q
I noticed some Atlantic City bonds you are offering, but I’m not interested in any bonds connected with New Jersey shore communities. Please keep me posted with other offerings.
A
James A. Klotz responds:
In light of Hurricane Sandy, we understand your thoughts regarding bonds issued by cities on the New Jersey shore, but it is precisely why we are recommending the bonds to our New Jersey clients. As municipal bond specialists, we are often able to identify bond offerings that may be out of favor for reasons that may not affect their ability to pay.
Because of Hurricane Sandy, there are some terrific opportunities to acquire high quality tax-free bonds at depressed prices. The Atlantic City general obligation bonds you refer to enjoy an “A-” (S&P) rating on their own merit, and are insured by AGM for principal and interest, making them “AA-” (S&P).
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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.