bond girl

Irrational Stupidity

I'd have to agree with Bond Guy. Touting the corporate debt of some brow beaten corporations and then saying how silly it is to buy cheap municipals seems somewhat contradictory. We all know that municipal debt is not Treasury debt, but here's a thought: in this environment, corporate debt is more risky than most basic municipal debt. Presumably, we all should look at the credit worthiness of a bond (corporate or municipal), and municipal bonds are trading like their pre-insured ratings. Corporates are trading like they could go under at any time, which they actually can.