Portfolio considerations

Municipal bonds through a potential recession—what to expect

February 02, 2023

Downgrades happen regularly
One-year drift and volatility ratios of U.S. municipal issues, 1970-2021
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Default amount by sector per calendar year
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How rare are municipal bond defaults?
U.S. municipal ratings one year prior to default, 1970–2021
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Trailing twelve-month speculative-grade default rates
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Defaults have far less impact on larger portfolios (Impact of a single default, based on a 52% recover rate)
ETF Trading Chart
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