Single issue risk

We have said it before, but worth repeating especially when investors have been practically forced into risky instruments by ZIRP.

“Seadrill Ltd., the London-based offshore driller controlled by billionaire Norwegian shipping magnate John Fredriksen, filed bankruptcy protection in the Southern District of Texas after working out a deal with most of its senior lenders to inject $1 billion of new money into the company pursuant to a pre-arranged plan of reorganization.”

ISM

The Institute for Supply Management (ISM) said its manufacturing index in August climbed to 58.8% from 56.3% in July. The highest reading since April 2011.

Muni bonds

An offering in the news …

CALIFORNIA ST MUN FIN AUTH REVENUE OID

REF-CMNTY MED CENTERS-SER A

Rating: Baa1(Moody’s)/A-(S&P)

Interest Rate: 4.00%

Maturity: 2/1/2042

Call Features: 2/1/2027 @ 100

Yield to Call: 4.00%

Yield to Maturity: 4.00%