Alert December 29, 2008

Bond Market: Down But Not Out

The average yield on municipal bonds has risen nationwide during the last 12 months from approximately 4.30 % to 5.75% for triple-A paper, and from approximately 4.45% to 6.40% for A-rated debt. Moreover, in this economy, nervous investors are hesitant to commit their capital, even to traditionally conservative investments like municipal bonds.