标题: Insured and Prerefunded bonds [打印本页] 作者: clearlycanadian 时间: 2011-7-11 18:35 标题: Insured and Prerefunded bonds
do these bonds generally have a lower yield?作者: thisisbrianly 时间: 2011-7-11 18:35
Yes, from the standpoint of an investor having a bond be pre-funded reduces the risk and therefore the expected return that an investor would require. Same with insurance, by having insurance the risk of default is somewhat mitigated, therefore investors will view it as relatively less risky compared to a bond without insurance and therefore be willing to settle for a lower yield.
