6)
Muni bond insurance is thought insurance.
Not exact matches
But there are 2 factors to consider in the
muni market: First, banks and
insurance companies held 28 % of the municipal
bonds on the market as of the second quarter of 2017.
Lower corporate tax rates reduce the tax - exempt appeal of
muni bonds to banks and
insurance companies, which had been significant buyers.
I started my zero coupon
muni bond ladder in 1997 when I got a large
insurance payment.
Since
muni bonds almost never defaulted, MBIA almost never had to pay off the
insurance.
Lower corporate tax rates reduce the tax - exempt appeal of
muni bonds to banks and
insurance companies, which had been significant buyers.
Now, with the disintegration of the
bond -
insurance business, only about 10 % of new
munis come to market with that protection.