Comments on: The Municipal Bond Ratings Debate Hits The New York Times

By: guest

guest — Tue, 04 Mar 2008 06:47:18 +0000

“The value of bond insurance is not what it was a half-year ago,” said Tom Dresslar, a spokesman for the California state treasurer’s office.
“It would be a waste of taxpayer money to buy insurance on our bonds,” Dresslar said.
California spent $102 million insuring general obligation bonds between 2003 and 2007.

By: gdm

gdm — Mon, 03 Mar 2008 20:33:50 +0000

For those who think muni insurance is a total rip off, read this:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9wVRJ4yf_7c
The county, in a notice to investors on Feb. 28, said it could “provide no assurance” that revenue from the sewer system would be sufficient to pay its increasing debt costs. The disclosure prompted S&P to lower the county’s sewer debt by six levels to B, five steps below investment grade, and keep the bonds under review for possible further downgrade.
So without the “monolines” Alabama would still be using outhouses…

By: guest

guest — Mon, 03 Mar 2008 20:05:31 +0000

Over at his blog, I offered myself to Mr. Salmon as an example of the muni investor he was looking for.

By: guest

guest — Mon, 03 Mar 2008 18:57:35 +0000

While the NYT article highlights it better than Carney, I’m gunna lean on the Fish man’s side a bit.
But to me, this is more of an argument over who is the biggest douchebag – there are no winners, just a much, much bigger loser.
-chad

By: Anonymous

Anonymous — Mon, 03 Mar 2008 17:55:59 +0000

I was talking to a muni bond manager at a commercial bank about 6 mos ago and he was telling me about traveling to meet with issuers and their treasurers etc.
I didn’t say it but I thought, man what a waste of money, just look at the damn rating.

By: guest

guest — Mon, 03 Mar 2008 17:31:07 +0000

Paleese, look who is unofficially running Moody’s: retired academics in dire need of pension income and no concept of real life whatsoever!
Moody’s sucks.

By: american bandersnatch

american bandersnatch — Mon, 03 Mar 2008 16:50:35 +0000

Who cares about municipal ratings anyway? They only one look, for Christ’s sake! AAA? AA? A? ? They’re the same rating! Doesn’t anybody notice this? I feel like I’m taking crazy pills!

By: Lowly Assistant

Lowly Assistant — Mon, 03 Mar 2008 16:40:24 +0000

I don’t understand why Salmon is so adamant about trying to refute Carney’s position on this. Isn’t it more common sense than anything? There’s only (really) once source to assess value on these? Am I incorrect in my understanding? Color me crazy.