A recent article in Governing Magazine highlights analysis from municipal bond experts, in assessing the position of those investments as vehicles in the predicted slow-growth economy. Despite high-profile issues affecting specific jurisdictions and their creditors, the expert assessments remain optimistic for the municipal bond arena overall.
Extremely distressed cities will remain the exception, said [analyst Tom] Kozlik, who is recommending municipal bond investors stick to high-quality general obligation and revenue bond issuers.
“High quality issuers are those who have been dealing with the new economic environment with their financial eyes open and those who plan and budget on a conservative basis,” he said. “We do not like and do not recommend investors consider municipal credits with highly speculative characteristics or where the level of political uncertainty is high.”