Regarding your article, “Push is on to Include Munis in New Banking Rule,” shouldn’t banks, as part of the new liquidity rule, be allowed to hold pre-refunded bonds, bonds insured by strong insurers and short-maturity bonds in compliance with their covenants?
C.K.
Municipal Bond Forum
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Insurance refund for called bonds?
My understanding is that municipalities generally pay an upfront fee to bond insurers to “”wrap”” their bonds until maturity. If a municipality calls a bond early (for example, to refinance), does it get a pro-rated refund or does the bond insurer get a windfall profit?
M.M., Tennessee
Insured vs. uninsured Puerto Rico bonds
With regard to the fiscal situation in Puerto Rico, do you believe there will be any difference between Puerto Rico municipal bonds that are insured and those that are not?
J.P.
Good news or bad news?
Is your article, “Puerto Rico Moves To Strengthen Bank, Defend New Law,” good news or bad news?
M.B., Texas
Puerto Rico question marks
Regarding your article, “Moody’s Downgrades Puerto Rico G.O. Debt“: Obviously the new law and downgrades are jolts to investment sanity after recent ups and downs. Puerto Rico has no revenue upside, their society has too many entitlements, etc. Do you envision them stopping payments on certain bonds or defaulting?
R.B., Arkansas
Wait And Watch?
Regarding your article Eye-Popping Yields Are Right Under Your Nose: Waiting and watching is exactly what to do. Rates will revert to the mean and many municipalities that are in debt may default. So unless the bonds are insured by a reliable insurance company, this is no time to put money in munis.
M.E., New York
Munis to beneficiaries
After I pass, how will my municipal bonds, held in a trust, be split among several beneficiaries? Are muni funds the better option?
R.F.
A ray of hope
In your article, “Puerto Rico Governor Unveils New Budget Plan,” you said, “If the governor’s plan is successful, this may provide a ray of hope for Puerto Rico bondholders….” What do you mean?
J., Connecticut
Bills seek to revive Build America Bonds
What is the status of the Build America Bonds (BABs) program?
S.S., New York
Assured Guaranty another ray of hope for Puerto Rico bonds?
Great article on Puerto Rico, “Puerto Rico Governor Unveils New Budget Plan.” But why did you refer in the last sentence to the governor’s plan as perhaps providing “a ray of hope”? I thought the upgrade earlier this year of Assured Guaranty, which insures some Puerto Rico bonds, was already “a ray of hope”?
B.P., Florida
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