Investing involves risk and possible loss of principal capital. Past performance is no guarantee of future returns. Advisory services are only offered to clients or prospective clients where Tamar Securities, LLCĪnd its representatives are properly licensed or exempt from licensure. Tamar Securities, LLC is a Registered Investment Adviser. Purshe Kaplan Sterling Investments and Tamar Securities, LLC are not affiliated companies. Securities offered through Purshe Kaplan Sterling Investments, member FINRA / SIPC, Headquartered at 80 State Street, Cumulative historic default rates (in percent):Ĭopyright © 2010 Tamar securities. The Municipal Bond Fairness Act (HR 6308), introduced September 9, 2008, included the following table giving bond default rates up to 2007 for municipal versus corporate bonds by rating and rating agency. The historical default rate for municipal bonds is lower than that of corporate bonds. Corporate bonds (AAA Rated tax-free municipals.)ĥ year-111% 10 year-154% Default Rates Treasury bonds (AAA Rated taxable municipals.)ġ year-200% 5 year-200% 10 year-175% 11. Attractive yield curve for tax-free and taxable municipal bonds. Surety credit enhancement of interest and principal over an underlying rating. The 100 largest institutional holders represent approximately 35% of the entire municipal bond market. High-net worth individuals, mutual funds, money market funds, property and casualty insurance companies and commercial banks. Generally, liquid secondary market for sizeable offerings. High Recovery Rateĭefaulted municipal bonds have a fairly high recovery rate of 68.33%. By comparison, the 10-year default rate for corporate bonds over the same period of time was 9.83%. The 10 year cumulative default rate on municipal bonds was 0.04% between 19. Municipal bonds have for a long time offered investors a safe Investment Vehicle. Market Value Securities (MVS sm) Presentation.Total Asset Market (TAM sm) Presentation.Traditional Broker/Dealer Execution Flow.General Price Analysis of Municipal Bonds.Analyzing the Credit Quality of Revenue Municipal Bonds.Analyzing the Credit Quality of General Obligation Bonds.
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