Municipal Bonds! (Again)

On December 12, 2010, now over a month ago, I posted an interview with Peter Campbell on my mind of money show. On that show I asked Peter to give me his take on Municipal Bonds.  This interview turned into a serious warning to consider your bond positions carefully.

This post is a very quick update on what is going on in the Municipal markets.  In just the past month A LOT OF ACTION has occurred which I feel is important enough to have an immediate update!

• Bond prices have dropped significantly in just the past month.
• Bond trading Volume in the $3 Trillion Muni Market has increased massively.
• Bond Yields on AAA Municipal Bonds have gone from 4% to 5%!!!
• Bond Fund share prices have gone from $15 a share to $12.50 in California and New York!
• Three New Bond Fund projects from vanguard have been CANCELED!
• Chatter about the safety in bonds and DEFAULTS has become active and everyone from the Financial Times to JP Morgan are cautioning investors about Municipals.

In addition to an update on Municipals I go over a current article from the Financial Times, Link:  http://www.ft.com/cms/s/0/dcc2cbe0-1f8a-11e0-87ca-00144feab49a.html#axzz1BJ8pt0vS