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