An Examination Of The Yield Spread Between Insured And Uninsured Debt
Currently, municipal bonds insured by major insurance firms receive the highest credit rating from rating agencies. The interest rates on regular triple‐A municipal bonds, however, have been persistently below those of insured bond issues. The yield spread between insured and uninsured triple‐A bonds in the tax‐exempt market is examined here, and it is shown that the yield spread may be attributable to split ratings and default‐related risks.
Journal of Financial Research
Hsueh, L. P. and Chandy, P. R., "An Examination Of The Yield Spread Between Insured And Uninsured Debt" (1989). Faculty Bibliography 1980s. 782.