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Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Municipal bonds: A train wreck waiting to ha Date:  12/6/2012  1:39 PM
Author:  Hawkwin Number:  410654 of 535242

I may be missing something because I looked at the morningstar rating before I even posted my query. The 4 star rating led me to believe that they thought it was a decent risk, but I didn't see any actual research on the individual holdings. There was also a research report on sale of $15, but I have never bought one of those and have no clue as to how useful such things may be.

Star rating has very little to do with risk. It has more to do with how that fund performed compared to its peers - and it is backward looking.

I would instead look at the average credit rating (A), Effective Duration (5 yrs), and whether the major holdings are callable.

This fund does present some risk that needs to be noted. The average weighted price is $112.
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