Municipal Bond Forum
Jefferson County bonds
Q
I own some Jefferson County bonds that are insured by Ambac. They last traded around mid-November at about 88 to 90. I have no idea if they will make their next interest payment in February, or if they will be redeemed at par in 2015. I am confused how the bankruptcy affects my bonds. Can you give me any info or guidance?
A
James A. Klotz responds:
Ultimately, the likelihood of your bonds paying interest and principal will be in the hands of Ambac.
Because of the AMBAC bankruptcy, we cannot say conclusively if it will be able to meet its obligations, although we think the odds are favorable.
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