An Examination of the Yield Spread between Insured and Uninsured Debt

Currently, municipal bonds insured by major insurance firms receive the highest credit rating from rating agencies. The interest rates on regular triple-A municipal bonds, however, have been persistently below those of insured bond issues. The yield spread between insured and uninsured triple-A bonds in the tax-exempt market is examined here, and it is shown that the yield spread may be attributable to split ratings and default-related risks.

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Year of publication:	1989
Authors:	Hsueh, L Paul ; Chandy, P R
Published in:	Journal of Financial Research. - Southern Finance Association - SFA, ISSN 0270-2592. - Vol. 12.1989, 3, p. 235-44
Publisher:	Southern Finance Association - SFA Southwestern Finance Association - SWFA

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008518580