Credit Surprises are a Staple of Municipal Bonds
Self-directed investors deserve expert, independent, and fair credit risk ratings and insight when buying or selling municipal bonds.
Municipal bond yields and prices are set by the ratings awarded by the commercial rating agencies. Their motivations, timeliness, and accuracy have been questioned.
Municipal bond pricing and differences in yield between rating grades are dependent on these issuer paid ratings. Much more so than any other domestic or international securities market.
The number of municipal issuers number almost 100,000 making it unaffordable for all but the rating agencies and institutions investing on their own account to appraise and follow.
U.S. corporations that issue bonds number less than 1,000. Most of these entities have listed stock, creating even more scrutiny and little doubt about appropriate credit rating.
The risk of nonpayment between deserving single and double-A rated municipals, for instance, is empirically insignificant, but rating(s) based yields are not.
Where to look and guidance on what to pick
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.
Benchmark provides this service to clients as needed on a flat fee per risk basis
Typically $200-$500 for rating & conference call or $2,000-$5,000, per risk including BBR credit report - samples . Minimum 48 hours’ notice please.
The lenders point of view is ours.
For individuals and their advisors who buy or sell issues in amounts of $100,000 and above.
Anonymous requests are welcome. Amounts held or
considered for purchase are not relevant to credit appraisal.
Benchmark Bond Ratings, Inc ®, Garden City, NY 516 242 6776
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