Muncipal defaults occur far more frequently than you think, according to the FRBNY, which looked...

|By:, SA News Editor

Muncipal defaults occur far more frequently than you think, according to the FRBNY, which looked at the whole universe of muni debt, not just rated issues. Of course, unrated bonds tend to be of lower quality and one would expect more defaults. The difference now: weakness in the bond insurers means both rated and unrated defaults are more likely to bring losses to investors.