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Friday, October 22, 2021
 

MANAGING DIRECTOR:
Scott Carrithers
 

PORTFOLIO SALES AND SERVICE:
George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino
Jeff Goble • Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris
 Brian Schaff • Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill • Jared Willhoft


 
US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
10/15/21 0.04 0.05 0.06 0.12 0.41 0.70 1.13 1.42 1.59 2.02 2.05
10/18/21 0.05 0.06 0.06 0.11 0.44 0.72 1.16 1.43 1.59 1.99 2.01
10/19/21 0.06 0.05 0.06 0.11 0.41 0.71 1.17 1.47 1.65 2.07 2.09
10/20/21 0.06 0.05 0.06 0.10 0.40 0.70 1.16 1.46 1.65 2.09 2.12
10/21/21 0.06 0.06 0.06 0.12 0.45 0.78 1.23 1.52 1.68 2.10 2.13
                                                                                                                                                                       Source: U.S. Department of Treasury as of 10/21/2021



                                       REFRESHER ON MUNICIPAL DEFAULT RISK

Moody’s Investor Service releases an annual study entitled “US Municipal Bond Defaults and Recoveries” which updates their findings concerning the default, loss and rating transition experience of Moody’s rated US municipal bond issuers.

Following are a few key findings from their latest report:
  • There were only two defaults of Moody’s rated municipal bonds in 2020, and neither were virus-related.
  • Municipal defaults and bankruptcies have become more common in the last decade but are still rare.
  • Municipal ratings were more resilient than corporate ratings to virus-related pressures in 2020.
The table below is a particularly telling snapshot of the cumulative default risk of rated municipals versus corporate bonds over a 10-year period.  Note that in the last fifty years, only .16% of all rated municipals have ever defaulted during a 10-year life versus 10.55% of all corporates.
  
Performing credit due diligence on municipal holdings is clearly still important, but you should rest easy knowing the risk of default continues to remain extremely remote.  









  


                                               

 
                                                                                 
                


This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value