Benchmarkbondratings.com From the investors' point of view
The first investor supported credit rating company specializing in municipal bonds. Established 2010
What Municipal Bond Investors Need to Know
An accurate credit assessment from the investors' point of view,
and ratings that quantify the difference in risk between rating grades.
BBR provides reliable intelligence and rating forecasts for individuals and trusts who
invest directly in new and secondary market municipal bond issues.
How important are accurate forward looking credit assessments? The credit spread between single-A and triple-B rated long term municipal bonds typically ranges from 25-40 basis points per annum. At the top range, that is $400 per 100 bonds ($100,000) per annum or $4,000 (4%) of par on a ten year maturity over ten years.
Why would insurance companies and banks employ municipal credit analysts to identify under, over and fairly rated issues, and warn against rating downgrades on risks they own or are considering for purchase? They lack confidence in rating agency opinions, possibly because bond issuers pay the rating opinion fees.
The municipal markets opaqueness works against the least and for the most informed.
Telephone consultation along with an easy to use credit value index
“Our ratings are defined an assigned by probability of default over a specified period. Municipal ratings expire between one and five years depending on default probability. Rating Scale
Issuer sponsored rating agency ratings do neither. That is a problem for fixed income investors generally but one that is most pronounced the municipal bond market.” Carl Dincesen, President, Benchmark Bond Ratings, Inc.
Benchmark Bond Ratings, Inc ®. Copyright, Garden City, NY Tel 516 280 3577 Fax 516 741 5005