If municipal bond defaults make the news, that can scare investors and bring down the price of municipal bonds. The risk of municipal bond default is less than 1%. Although the risk of municipal bond default is extremely low, it can still happen, so make sure you do your research. Headlin...
Municipal bonds are issued by a city, local or state government and have long been identified as among the safest investment options in the country. However, for some local governments, the financial crisis has caused revenue to drop and bond payments le
Inflation risk.In this scenario, you might be holding a long-term bond whileinflationeats away at the amount you’re making on interest payments. Depending on how bad inflation gets, it effectively shrinks your gains. Liquidity risk.Illiquid bonds are those that are hard to sell. Maybe you ...
Finance Two essays in municipal bonds risk LEHIGH UNIVERSITY Nandu Nayar AlshathriFahad IState and local governments rely primarily on defined benefit pension plans to provide pension benefits for their employees, and since these types of plans are unfunded by nature, state and local governments in ...
Invests in municipal bonds rated in any rating category or unrated municipal bonds, but does not intend to invest more than 35% of its assets in municipal bonds rated below investment grade. The Fund will usually invest in municipal bonds having a maturi
Using daily data on municipal bonds and equity returns from the 50 US states, we find barring extreme periods of financial, macroeconomic, and health crises, the underlying conditional correlation between these two assets is negative. When we capture the effect of climate risk quantiles on the ent...
Conservative, high-quality, actively-managed municipal bond portfolio that seeks the highest available level of current income exempt from federal taxes while maintaining overall portfolio risk AB Municipal Income Portfolio (SMA) An active core municipal strategy that primarily invests in investment-grade ...
Chinese investors rush into local government bonds Central government support for local financing vehicles helped lift debt sales in August to near-record levels July 12 2023 Municipalities aren’t going to drive US economic growth But they aren’t going to tank it either ...
Revenue bonds, which are issued to fund infrastructure projects, are supported by the income generated by those projects. Both types of bonds are tax-exempt and particularly attractive to risk-averse investors due to the high likelihood that the issuers will repay their debts.1 Credit Risk ...
Investors can judge the risk level of a bond they are considering by checking the bond's rating. All bonds sold in the U.S. are rated by one of three bond-rating agencies: Moody's Investors Service, S&P Global, or Fitch Ratings.Bond ratingsare based on an analysis of the creditworthines...