AlisterTalksBonds.com Sharon Alister logo

Search

stifel logo
 
AlisterTalksBonds.com Sharon Alister logo

Search

stifel logo
 

Municipal Bond Security Features

Not all AAA-rated municipal bonds are the same! The credit enhancements listed here that support municipal bonds are ranked from top to bottom as “safer” to “less safe.” Understand, they are all good credit support features, it’s just that some AAA-rated bonds are safer than others. (See Investment Strategy Article by similar name.)

Municipal Bond Credit Enhancements

  • Escrowed to Maturity (ETM)
  • Pre-refunded (Pre-re’s)
  • Direct Collateral (GNMA, CDs, etc.)
  • Government Insured (FHA)
  • High Grade Rating (AA, AAA) of the issuer without enhancement
  • LOC from AAA-Rated Bank
  • Municipal Insurance

Click for Municipal Bond Security Features PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

Interest Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14
today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Municipal Bond Security Features

Not all AAA-rated municipal bonds are the same! The credit enhancements listed here that support municipal bonds are ranked from top to bottom as “safer” to “less safe.” Understand, they are all good credit support features, it’s just that some AAA-rated bonds are safer than others. (See Investment Strategy Article by similar name.)

Municipal Bond Credit Enhancements

  • Escrowed to Maturity (ETM)
  • Pre-refunded (Pre-re’s)
  • Direct Collateral (GNMA, CDs, etc.)
  • Government Insured (FHA)
  • High Grade Rating (AA, AAA) of the issuer without enhancement
  • LOC from AAA-Rated Bank
  • Municipal Insurance

Click for Municipal Bond Security Features PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

Interest Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14
today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Investing involves risk, including possible loss of principal. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall. Conversely, as interest rates fall, bond prices will rise.

Copyright © 2013 | Stifel, Nicolaus & Company, Incorporated. Member SIPC & NYSE, All Rights Reserved