Default Risk of New York Munis

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
BogleAlltheWay
Posts: 368
Joined: Mon May 15, 2017 5:25 pm

Default Risk of New York Munis

Post by BogleAlltheWay » Thu Mar 26, 2020 8:14 am

Are NY Munis more risky because of all the lost revenue for the state? I current hold the Vangaurd NY Muni fund.
If so should I switch to some other bonds?

MikeG62
Posts: 2496
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Default Risk of New York Munis

Post by MikeG62 » Thu Mar 26, 2020 9:10 am

BogleAlltheWay wrote:
Thu Mar 26, 2020 8:14 am
Are NY Munis more risky because of all the lost revenue for the state? I current hold the Vangaurd NY Muni fund.
If so should I switch to some other bonds?
The market seems to think that most muni’s are a lot more risky now than 60 days ago.
Real Knowledge Comes Only From Experience

am
Posts: 3258
Joined: Sun Sep 30, 2007 9:55 am

Re: Default Risk of New York Munis

Post by am » Thu Mar 26, 2020 9:25 am

MikeG62 wrote:
Thu Mar 26, 2020 9:10 am
BogleAlltheWay wrote:
Thu Mar 26, 2020 8:14 am
Are NY Munis more risky because of all the lost revenue for the state? I current hold the Vangaurd NY Muni fund.
If so should I switch to some other bonds?
The market seems to think that most muni’s are a lot more risky now than 60 days ago.
It’s hard for municipalities to collect taxes and pay bonds when so much of the economy is shutdown and many people aren’t working. Makes sense.

cks
Posts: 136
Joined: Thu Dec 13, 2007 7:21 pm

Re: Default Risk of New York Munis

Post by cks » Thu Mar 26, 2020 9:28 am

You have to decide how badly you want to avoid paying your local taxes. NY is going to need the revenue:

https://www.mercatus.org/publications/4 ... n-new-york

https://patch.com/new-york/new-york-cit ... cal-health

Post Reply