The question is not how much how much risk, small or large, but rather does reward equal or exceed it.
The difference in risk of nonpayment between single and double-A rated municipal is empirically insignificant, but credit spreads between them are not. They are dependent on the rating opinions of commercial rating agencies whose motivations and accuracy have been questioned.
WHERE TO LOOK AND GUIDANCE ON WHAT TO PICK
Independent, Accurate, Forward Looking Municipal Credit Rating and Insight On a Flat Fee Per Risk Basis. Minimum 48 hours notice please.
Municipal pricing and credit spread are more dependent on the issuer paid rating agencies than in any other domestic or international securities market.
To win this opaque ratings game, banks, insurance companies, and institutional investors employ credit specialists to identify over-rated, fairly, and under-rated new and secondary market issues.
That is the service we provide to you when considering particular municipals for purchase or sale.r