Our goals are simply stated as guiding municipal investors to stable or improving borrowers, and avoiding declining credits. To that end, self directed high net worth investors should not be without an independent investor point of view credit assessment.
Why a second opinion on municipals?
Because municipal bond yield or risk differentials are determined almost entirely by ratings assigned by issuer paid rating agencies. That because no other bond market has nearly 90,000 different issuers.
Individual investors and their advisors who do not have access to professional buy side credit opinions are disadvantaged, having only the free credit ratings provided by commercial rating agencies to rely on.
The track records of municipal bond ratings from the rating agencies speak for themselves.
The risk of nonpayment between deserving single and double-A rated municipals, for instance, is insignificant, but yield differentials between them are not.
Holding to maturity does not protect the investor from financial cost of owning a bond downgraded subsequent to purchase. Too much was paid for the bond.The loss of income equals the higher yield differential from the downgrade date to final maturity.
On lower rated municipals, credit spreads increase along with the opportunity to gain income or protect against loss of yield using BBR's rating consultation service
Where to look and guidance on what to pick
Between $200-$500 per risk for verbal rating & conference call. Written BBR credit reports - samples, call for quote . Minimum 48 hours’ notice please.
For individuals and their advisors who buy or sell issues in amounts of $100,000 and above.
Confidentially Guaranteed - Clients need not disclose principal amount(s)
Benchmark Bond Ratings®, LP Garden City, NY 516 242 6776