From the course: Understanding Capital Markets

Unlock this course with a free trial

Join today to access over 25,300 courses taught by industry experts.

Bond ratings and municipal bonds

Bond ratings and municipal bonds

From the course: Understanding Capital Markets

Start my 1-month free trial Buy for my team

Bond ratings and municipal bonds

“

- [Instructor] While news stories like municipal bond defaults for Detroit and Puerto Rico often scare people, munis are safer than they may seem, but you don't have to take my word for it. Invesco put out a great primer on municipal bonds. It's available through their website. It's this primer on municipal bonds, what investors need to know. Now, Invesco went and did their own research and also drew on information from the rating agencies, and there's a lot here. I would certainly encourage you to look through this if you're interested, but if we scroll down to page five, there's one chart that really highlights what you care about as a municipal bond investor, and that's figure six here with historical default rates. This chart looks boring, but in fact is incredibly interesting and incredibly useful, and it's drawn from Moody's data. Now, what they're showing here, what Invesco and Moody's are showing us is that municipal bonds default very, very rarely. Let's start at the top…

Contents