Check on a Municipal Bond Today: Surviving the Municipal Bond Market
Be sure to check on a municipal bond before you hop on the bandwagon and bid on the dicier instruments that are out there. Riskier bidding has become a recent trend among investors attempting to compensate for the record low yields that are still lingering in the municipal bond market. It's hardly news that investors are attracted to higher returns. This is especially true in an environment where yields on muni bonds are lower than ever. As muni bond yields are currently dropping to lows not previously recorded in the municipal bond market, one can practically hear the collective stomachs of investors growl, as they continue to develop ravenous appetites for the bonds they believe will garner more hefty returns.
Pursuing High Risk and Returns
Investors are typically willing to take on higher risk for greater returns, but while the municipal bond market has always demonstrated uncanny durability in the face of debt, doubt and uncertainty, we're still not very far removed from the prevalent headline predictions of apocalyptic municipal bond defaults, a catastrophe many believed would be spurred by the dwindling economy and massive debt plaguing all levels of government. Therefore, those choosing to completely forsake the top-rated, creditworthy investments could conceivably find themselves in some trouble should the ball happen to drop in the near future.
Recent figures show that investors are foregoing the top rated bonds in favor of those that have been rated only slightly above junk level. Instead of jumping the gun too soon and placing themselves in a precarious position, investors should utilize the high-tech bond analysis tools made available to them through BondView. The new sheriff in a town of bond bidding lawlessness, BondView allows investors to analyze municipal bonds by intuitively deducing ratings that span across a variety of spectrums, including summary, market, yield, liquidity, volatility, and sector.
Safely Leveraging the Municipal Bond Market
Always turn to the BondView Summary RatingTM system before you pull the trigger. Our advanced rating systems allow individuals to check on a municipal bond to make sure the risk-return tradeoff remains favorable in comparison to other municipal bonds.
Also of note for the budding bondholder is The BondView Yield RatingTM. This rating is assigned based on muni bond yields for a given bond, compared against the projected returns associated with other municipal bonds.
Investors would be wise to take the time to personally perform research; for individuals armed with these high-tech tools, the occurrence of getting burned by municipal bond defaults is far less likely to happen.