UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next
Author: TMFCogitarius Big gold star, 5000 posts Old School Fool Home Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35365  
Subject: Re: Poll: Bonds as % of assets Date: 6/21/2010 3:30 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Hi Dan - the muni pension deficit certainly looks like a serious threat.

Barron's just came up with some pointers for muni investors to bypass that hazard, based on a recent client advisory by Howard J. Cure, director of municipal research for Evercore Wealth Management :

'Bonds backed by specific revenue streams, such as sales or personal income taxes, with the debt service on the securities getting first dibs.'

'Essential-service revenue bonds, such as for water, sewer or electric utilities. Even people who "strategically" default on their mortgages keep paying their utility bills so the lights or water don't get turned off.'

'Bonds issued by private colleges and universities. While they are getting increasing competition from cheaper public colleges, private institutions typically have defined-benefit plans. Universities with substantial endowments and that are broadly attractive to students provide strong bondholder protection.'

More useful details at the link:
http://online.barrons.com/article/SB127655647997505801.html?...
-------------------------------------------
Global Gains Home Fool
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next

Announcements

Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement