Municipals Bond Defaults: Oh, Switch Off!
January 02, 2009 at 13:05 PM EST
Let’s compare two companies, thinking in terms of credit-worthiness. Note that on May 1, 2008, credit-default swaps (CDS) on both companies were around 55bps. By way of comparison, CDS on the United States of America current trade at 67bps. Company A: Is heavily exposed to residential and commercial real estate Has experienced an 18% decline in revenue over the [...]