Duration: 2:11
Transcript: When you’re working with a team that understands the municipal bond world and that also understands credit ratings, credit quality, claims paying ability, specific insurance companies, what to buy and more probably more importantly, what not to buy. That is very important from a standpoint of taking advantage of the market on an opportunistic buy, putting money to work and leaving it there. And not having to worry about the volatility we’ve been experiencing or we could experience because you know that the money itself is highly rated in the portfolio.
Why don’t we buy lower rated credit quality paper? And and we’ve been asked this before.
We covered this on a couple of webinars in the past. And the reason being is is because of the fact that we have found that most municipal bond buyers are looking to protect wealth or, keep with high grade credits.
Protecting wealth doesn’t necessarily mean buying on, let’s just say, everything triple a rated, double a rated, or single a rated. What that really means is understanding what you’re purchasing, understanding the municipality on the underneath, and understanding the credit rating for the insurance company. And probably equally as important, understanding how the bonds are paid, whether it’s a revenue bond or general obligation bond or so on and so forth. So when you’re working with a team that understands the municipal bond world and that also understands credit ratings, credit quality, claims paying ability, specific insurance companies, what to buy and more probably more importantly, what not to buy.
That is very important from a standpoint of taking advantage of the market on an opportunistic buy, putting money to work and leaving it there and not having to worry about the volatility we’ve been experiencing or we could experience because you know that the money itself is highly rated in the portfolio.
