It will be interesting to see how existing
muni bonds default on their agreed upon interest rates.
Not exact matches
The
default rate on double and triple A
muni bonds has been 0.1 %.
Between 1970 and 2014, not a single Aaa - rated
muni defaulted, while Aa and A-rated
bonds — the kinds NEARX heavily invests in — were highly unlikely to
default.
Although he says he is not sure whether the market will suffer $ 10 billion or $ 30 billion in
defaults, he is certain that there will be a panic at the margin, and
Muni bonds from the highest - rated on down will fall, in part because other investors tend not to step to invest.
You can see that
munis»
default rate is near - zero and that Aaa - rated
bonds don't even register.
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.
@StockTwits It's really difficult to get a
muni bond to
default.
Since
muni bonds almost never
defaulted, MBIA almost never had to pay off the insurance.
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.
Muni bond yields are reasonably attractive relative to Treasury yields, and fears about a rise in
defaults remain totally misplaced.
Features Notes on the Current State of the
Muni Bond Market Muni bond yields are reasonably attractive relative to Treasury yields, and fears about a rise in defaults remain totally mispla
Bond Market
Muni bond yields are reasonably attractive relative to Treasury yields, and fears about a rise in defaults remain totally mispla
bond yields are reasonably attractive relative to Treasury yields, and fears about a rise in
defaults remain totally misplaced.
I write this so that all parties can understand the dynamics going on, so that when
muni defaults happen, and the normal dynamics in the
bond market shift, you won't be surprised at the results.