Outlook for Municipal Bond Defaults – Settlement on Largest May Come Soon [View article]
Reply to boyson
Nearly all of the bonds carry insurance. I should have mentioned that. Some investors are being paid while some others are not depending on which insurer backed the bonds held. Insurance was necessary to induce providers of liquidity to stand behind the auctions as buyers of last resort. That obligation terminated when the bond insurers where downgraded.
Municipal Bonds: Woe Is Me [View article]
Outlook for Municipal Bond Defaults – Settlement on Largest May Come Soon [View article]
Nearly all of the bonds carry insurance. I should have mentioned that. Some investors are being paid while some others are not depending on which insurer backed the bonds held.
Insurance was necessary to induce providers of liquidity to stand behind the auctions as buyers of last resort. That obligation terminated when the bond insurers where downgraded.