Category Archives: Muni Bonds

Detroit

In the news  …

“The city of Detroit, which filed for bankruptcy July 18th, will continue to pay secured creditors, including water and sewer bondholders, according to credit market analysts.”

Muni Bonds

A recent report has been circulating.  An excerpt below:

“While we hold a long-term constructive view of the municipal market, we believe it is time to consider some selective selling,” the report says. “Accordingly, we advocate lightening up on 25- to 30-year debt with sub 5% coupons as well as low-BBB-rated and sub-investment grade paper… For buyers, we prefer state-level general obligation bonds, state-level appropriated paper, local general-obligation bonds and essential-service revenue bonds with mid-tier A ratings and higher, as well as AA-rated hospital debt within a maturity band of six to 14 years.”