Young Research & Publishing Inc.

Investment Research Since 1978

Compensation was paid to utilize rankings. Click here to read full disclosure.

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Are your Municipal Bonds at Risk of Default?

July 3, 2017 By Jeremy Jones, CFA

Illinois, one of the biggest muni bond issuers in the country is at risk of having its general obligation bonds downgraded to junk status. If the state is downgraded it would become the first in the nation to be rated junk.

The FT reports

Despite marathon talks, Democratic and Republican lawmakers were unable to agree on a budget by the end of the fiscal year that ended on Friday. Rating agencies had said that missing the deadline was likely to trigger a downgrade, and while talks continued over the weekend, it was looking increasingly likely that no deal will be agreed.

S&P and Moody’s, the two biggest rating agencies, relegated the state’s $25bn of “general obligation” debt to the lowest possible investment grade at the start of June. They warned that they would push it into non-investment grade territory — popularly called “junk” — if the legislature failed to pass a budget for a third year running.

“The rating actions largely reflect the severe deterioration of Illinois’ fiscal condition, a byproduct of its stalemated budget negotiations,” Gabriel Petek, an S&P analyst, said in a statement at the time. “The unrelenting political brinkmanship now poses a threat to the timely payment of the state’s core priority payments.”

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Goldman Warns on Junk Bonds
  • Muni Bonds at Risk
  • Are Catastrophe Bonds Worth the Risk?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Preparing You and a Loved One for Thanksgiving
  • Young Americans Tighten Their Belts as Boomers Consume
  • Retirement Income: We All Want It, We All...
  • Israel and Hamas Conflict Spilling into World’s Oceans
  • How Low Can Home Sales Fall?
  • Coal Giant Shifting Focus to Green Metals
  • “Inflation Is Killing Me,” He Said, “No It’s…”
  • Biden’s Debt-Fueled Spending Binge and America's Credit Rating
  • The Power of a Compound Interest Table
  • What Do Plunging Metal Prices Say About Electric Vehicles?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

Your Survival Guy: “Life on Main Street Hasn’t Been This Hard in a While”

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

RSS The Latest at Richardcyoung.com

  • Evil
  • Are Investors Ready to Pounce?
  • Americans Spent Plenty on Black Friday, but in a New Way
  • Should Taiwan Worry about America’s Commitments to Ukraine and Israel?
  • Senator Warns of Terrorist Attack Risk
  • The Dutch Reject Mass Immigration and Globalization
  • PROTECT THE BORDER: Canadian Pigs Threaten American Farmland
  • Milei’s Promise to Dismantle Corrupt Peronist System Won Argentina
  • Florida Business Owner, Alfie Oakes, Refuses to Comply with Biden Vaccine Mandate
  • FDA Considers Withdrawing Approval for Popular Pork Antibiotic Over Cancer Concerns

RSS The Latest at Yoursurvivalguy.com

  • Are Investors Ready to Pounce?
  • Disney Signals Problems with the ESG Agenda
  • Biden Gave Americans 10 Years of Inflation in Only 3
  • Happy Black Friday
  • Which Jimmy Buffett Album Is Your Favorite?
  • More Americans than Ever Own Guns
  • Happy Thanksgiving!
  • Preparing You and a Loved One for Thanksgiving
  • The Next Ronald Read? Save Til It Hurts
  • Americans Don’t Think Inflation Is Over

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.