A number of sources are reporting (here and here) that Buffet is canceling his short Municipal CDS positions (essentially a play on rising municipal bond prices) with a few hundred million dollar loss five years early. This is telling as Buffet is a long-term investor and will usually ride out any losses for a while. It may be worth heeding the unsaid advice of the guru form Omaha on this one.
I also saw these two stories (here and here) that are worth a read. Essentially detailing the findings that not all municipal bonds are made equal and that default rates may be higher than otherwise reported. The moral of the story is to make sure you know what your are buying.
I also saw these two stories (here and here) that are worth a read. Essentially detailing the findings that not all municipal bonds are made equal and that default rates may be higher than otherwise reported. The moral of the story is to make sure you know what your are buying.
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