Saturday, September 15, 2012

Backing Away from Municipal Bonds

I missed this in last month's financial news:

(Newser) – Warren Buffett isn't betting on the health of cities, states, and towns anymore. Berkshire Hathaway has backed out of a number of credit-default swaps insuring $8.25 billion in municipal bonds, sending shivers of doubt through investors who've been hungrily buying such bonds, the Wall Street Journal reports. The insurance-like derivatives, which Lehman Brothers purchased in 2007, would require Berkshire to pay a large sum if the governments in question defaulted. 

-Newser 8/21/2012

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