It may be because.....

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Posted by DlphcOracl on November 06, 2009 at 10:32:01:

In Reply to: For Muni investors... posted by Kevin on November 06, 2009 at 06:46:39:

....of the historically low default rate of municipal bonds. States can always raise taxes and they are loathe to default on bonds they have issued. A major bond default by a state all but guarantees that they will be unable to sell bonds and raise additional funds in the future.

: I'm finding it quite bizaare munis are not undergoing major ratings downgrades. Tax revenues are down, services being cut, pension obligations, unemployment at 10+ %. Anyone else find it odd?

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Comments: : ....of the historically low default rate of municipal bonds. States can always raise taxes and they are loathe to default on bonds they have issued. A major bond default by a state all but guarantees that they will be unable to sell bonds and raise additional funds in the future. : : I'm finding it quite bizaare munis are not undergoing major ratings downgrades. Tax revenues are down, services being cut, pension obligations, unemployment at 10+ %. Anyone else find it odd?

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Comments:	: ....of the historically low default rate of municipal bonds. States can always raise taxes and they are loathe to default on bonds they have issued. A major bond default by a state all but guarantees that they will be unable to sell bonds and raise additional funds in the future. : : I'm finding it quite bizaare munis are not undergoing major ratings downgrades. Tax revenues are down, services being cut, pension obligations, unemployment at 10+ %. Anyone else find it odd?
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