Muni bonds and recent storms

“Early signs indicate bond insurers can withstand the recent hurricanes Harvey and Irma with no change in credit ratings, while Maria’s impact may be moot.

Although insurers are still tallying the costs, S&P Global Ratings said Assured Guaranty, Build America Mutual and National Public Finance Guarantee aren’t at risk for a ratings downgrade as a result of Harvey and Irma.” — FMS Bonds

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.