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Why trust the muni bond rating agencies?


Moody’s and Standard and Poor’s proved their fallibility in 2008 and before.

Their ratings are useless.

Why should I trust them now?



James A. Klotz responds:

We never suggested the rating agencies are infallible or should be “trusted” when making your investment decisions.

We do believe, however, that ratings should be one of the considerations when researching municipal securities.

May 18, 2017

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