Sentences with phrase «municipal bond defaulted»

The S&P Municipal Bond Default Index tracks municipal bonds that have entered default by not paying all or part of the promised principal or interest when due.

If and as the Puerto Rico bonds default it can be expected that they will be added to the S&P Municipal Bond Default Index during a monthly index rebalancing and if they do they may have a significant weight in this index.

Despite highly publicized defaults such as Puerto Rico and Detroit, the municipal bond default rate remains low.

So far, the S&P Municipal Bond Default Index is in negative territory with a return of -1.54 %.

The risks: Despite some high - profile municipal bond defaults, such as the 1994 default by California's Orange County, the vast majority of state and local bond issuers repay their debts as promised.

By keeping bonds in the benchmark even when a default occurs, the index has become a living timeline, allowing us to track the municipal bond default rate.

Based on the index data, the high - yield municipal bond default rate also jumped from 0.807 % to 1.264 % in 2014.

Rieger, James & Cling T. January 2015 Fixed Income Update: The U.S. Municipal Bond Default Rate Hits 3 - Year High in 2014: 0.17 %

Not exact matches

Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the municipal bond market because its effects were already «priced in» ahead of time.

Eliminating Puerto Rico's debts could raise interest rates on bonds to insulate against potential defaults, and subsequent debt elimination, on municipal bonds.

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

* Municipal bonds can also help insulate your portfolio against market volatility, and tend to have lower default risk than corporate bonds.

The Fidelity Defined Maturity Funds hold from 40 to 70 Investment Grade municipal bonds so as to minimize default risk.

LB: With the default rate on municipal bonds being so low, is the benefit of diversification worth 100 BPS (1.0 %) in fees?

While defaults are rare in the municipal bond market (less than half of 1 percent) they do happen.

In the municipal bond investing world, you do not get paid well for taking default risk.

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

James Lyman, director of municipal bond research at Manhattan - based Neuberger Berman, then testified that the town should have alerted his firm to an acceleration clause, which required the town to pay the entire loan within 60 days of a default.

Since the crash, a down - spiral is underway in the $ 2.8 trillion municipal - funding system, in which local governments don't have the revenue to meet bond payments, they can't get new financing, municipal bond rates are rising, and, to worsen it all, crazy credit default swap deals have been foisted on localities.

Last year, 187 U.S. municipal bond issuers officially defaulted, on a total of $ 6.4 billion — almost half of which was from 122 real estate projects in Florida.

«Statistically» this year to date, «only» 30 municipal issuers have officially defaulted on $ 1.5 billion in bonds, but thousands of government authorities are in de facto default on payments, and madly scrambling for re-negotiation, or forebearance, or blind hope.

In 2014, the default rate of the S&P Municipal Bond Index rose for the first time since 2011, finishing the year at 0.17 %.

Tyler oversees senior loan, municipal bond and credit default swap indices globally.

Thew book takes you through what you would do in order to preserve purchasing power in a bond portfolio through a crisis where there are significant municipal defaults amid inflation.

Without going into too much detail of statistics and standard deviation, I can tell you that there is a lot of research evidencing less than a 0.5 % default rate for investment grade municipal bonds for the last few decades.

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

Sectors within the municipal bond market are each unique and have their own set of risks and that holds true for defaulted bonds.

In 2015, 10 - year cumulative default rates stood at 0.24 % for municipals vs. 11.16 % for corporate bonds, according to data from S&P.

The corporate bond market is currently enjoying a period of lower historical default rates while the municipal bond market is wrestling with the largest default in it's history — Puerto Rico.

Unlike corporate bonds or municipal bonds, Treasuries are considered to have a zero chance of default; markets assume that the U.S. will always make good on its financial obligations.

Investment Grade: is a rating that indicates that a municipal or corporate bond has a relatively low risk of default.

Historically, very few municipal bonds have defaulted, with a record of safety second only to that of U.S. Treasury securities.

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

the disclosure of certain enumerated events affecting a municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax - exempt status of the security; (7) modifications to rights of securities holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax - exempt status of the security; (7) modifications to rights of securities holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and municipal disclosures, market data and education

That's because — unlike the alphabet soup of bonds, like CDOs and MBSs, that have been causing all the trouble in the credit markets — defaults in municipal bonds are practically unheard of.

For instance, Puerto Rico's fiscal distress was pretty well telegraphed and thus the broad municipal bond market barely budged when they defaulted on their debt or now as their bonds fall further.

An investment grade is a rating that indicates that a municipal or corporate bond has a relatively low risk of default.

* Municipal bonds can also help insulate your portfolio against market volatility, and tend to have lower default risk than corporate bonds.

Municipal bonds are one of the safest investments you will find with an average default rate of 0.07 % between 1970 and 2016, according to an annual study by the Moody's credit agency.

A credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage - backed securities or corporate bonds.

Combining this data reveals a definitive trend: Historically, municipal bonds have had a lower propensity to default.

But even in the depths of the great depression, defaults of municipal bonds remained relatively low.

The corporate bond sector of the municipal bond market has historically been one of the sectors where bonds have a higher propensity to default.

While municipal bonds were once viewed as almost risk - free, their reputation is now less sterling, thanks to defaults by Puerto Rico, Detroit and others.

Some municipal bonds are insured by outside agencies, usually a monoline insurer, which promises to pay the interest and principal if the bond's issuer defaults.

The default rate for municipal bonds is much much lower than it is for corporate bonds.

For the period 2007 to 2016, which includes the recession, the five - year default rate for municipal bonds was 0.15 %, compared with 6.92 % for corporate bonds.

In the past 50 years, less than one percent of the hundreds of thousands of municipal bonds issued have gone into default.

Unlike corporate bonds, the governmental nature of municipal bonds lowers the risks associated with them, but it is still potentially possible for a municipality to go bankrupt and default on a bond.

If we do keep shrinking into a depression, even the bond investing and savers will get impacted, many of the AAA bonds and municipal bonds may go into default.