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To: Knighty Tin who wrote (204900)	11/14/2002 9:00:47 PM
From: Knighty Tin	Respond to of 436258

A muni story for those who worry about credit risk. A client of mine bought a Muni Bond called St. Paul Harbor way back in 1991, long before he met me. At the time it was BBB, or, lowest investment grade. That year, it was downgraded to BB, then CCC in 1992. The bond price went down (Duh!). But they paid interest over the entire period and are now redeeming the bonds at market, which is about $72. True, he lost 28% on the bonds. But he got above market yields for 11 years. This is a crappy muni, but indicative of the sort of "workout" you often get in the muni market even when you get a sour one. I just mention this because one shouldn't compare the ratings of munis with the ratings of corporations. You'll never see nickle one on Worldcom bonds. But you usually get a nice chunk back even on failed muni bonds.