NID - Insured Municipal Bonds May Offer Added Security For Investors
By Greg Rawls, Investment Research Analyst on Jul 18, 2018, in Fixed Income
Puerto Rico's recent history of municipal bond defaults has highlighted the potential benefits of a niche part of the municipal (muni) bond market - insured municipal bonds. Insured munis accounted for 6% of all municipal issuance in the first half of 2018,1 but we believe these can play a role for investors who want assurance that their bonds' interest and principal will be paid on time - even if the issuer defaults.
What are insured muni bonds?
Municipal bond insurance companies