Please read the prospectus carefully before investing.Ī Member of the Power Financial Corporation Group of Companies™ ![]() For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial representative, call Putnam at 1-888-4-PUTNAM ( 1-88), or click on the prospectus section to view or download a prospectus. retail investor: Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. Any economic and performance information is historical and not indicative of future results. Investors should consult a professional advisor before making investment and financial decisions and for more information on tax rules and other laws, which are complex and subject to change.Īll funds and investment products involve risk, and you can lose money. This information is not meant as tax or legal advice. Putnam, which earns fees when clients select its products and services, is not offering impartial advice in a fiduciary capacity in providing this sales and marketing material. It is not intended to address the needs, circumstances, and objectives of any specific investor. It is not a recommendation of any specific investment product, strategy, or decision, and is not intended to suggest taking or refraining from any course of action. This material is for informational and educational purposes only. The views and opinions expressed are those of the fund manager above, are subject to change with market conditions, and are not meant as investment advice. This content is not an offer to any investor who is not qualified under local law. Services provided by Putnam may not be available in all countries or to all investors. Individual investors can learn more at, and financial advisors can visit /advisor.Īny Putnam funds referenced in the above articles are not available for sale outside the United States. economy continues to improve.ĭownload the white paper as pdf or read on Scribd. But the fundamental budget stress at the heart of the current struggles will slowly ease as the fiscal measures being put into action by the states and municipalities begin to take effect and as the U.S. This is not to say that there will not be future defaults in the municipal market there will be. Municipal Bond Defaults and Recoveries, 1970-2009, February 2010). ![]() In fact, muni defaults are only minimally higher than their 20-year peak in 1991 and are outpaced historically at every rating level by corporate bond defaults (Source: Moody’s Investors Service, U.S. Nearly one year ago, one well-known analyst predicted 50 to 100 sizeable defaults, totaling hundreds of billions of dollars. While municipal defaults have ticked up recently, it is important to note that the predicted massive number of defaults has not materialized. While defaults do happen, they occur with far less frequency than in the corporate bond market, and more often than not, they are confined to particular sectors of the market, typically in land development deals or unrated securities. We believe municipal bond investments are potentially quite attractive: Defaults have remained low, contrary to overblown predictions in the media spreads are attractive on a historical basis and muni/Treasury ratios are still above historical averages.ĭefaults in the municipal bond market are generally misunderstood.
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