Municipal Bond Forum
Relying on the rating agencies
Q
When I read news reports about certain bonds, I’m reminded of the importance of rating agencies. I can’t investigate municipalities. As investors looking for ways to get a decent return on our money these days, we all rely on the integrity of Moody’s, S&P, etc.
A
James A. Klotz responds:
Your point is well taken.
Although the rating agencies severely damaged their credibility when they ventured away from their traditional areas of expertise, their municipal ratings have generally been reliable.
As bond specialists, it is incumbent upon us to do our own due diligence. Dr. Jay Abrams heads our credit analysis team.
Start here.
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