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Bond Credit Ratings - Have Investors Learned Their Lesson?

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In this article published January 4, 2012, Doug Dachille provides an in-depth analysis of a recent consent solicitation to amend key provisions of a municipal bond indenture agreement.  If approved, the proposed amendments are likely to cause the credit rating of the bond to improve.  However, upon careful analysis it becomes clear that bondholders would be exposed to significantly greater economic credit risk to the benefit of the shareholders of a large investment bank.  Votes are due by January 6, 2012 and the result should be telling.

Read full article (pdf)