Summary
- Defaults in the municipal space are rare, but when they do occur they are predominately in non-rated or below-investment-grade rated bonds.
- HYD holds over 1/3 of its bonds in the non-rated category, which does not give investors much insight into how risky those bonds really are.
- Tax-exempt debt will continue to draw investor interest, especially in 2021 if we see taxes rise.
Seeking Alpha
Aug. 9, 2020