The point of bonds is to have a liquid asset you can sell in a crisis should you need to.Not really a concern if you buy good quality munis like Vanguard’s muni funds. There was FUD going around about munis then that turned out to be unwarranted. There may be liquidity concerns in a crisis, but also not a problem if you don’t need to sell.
During GFC, there was a fair bit of wreckage in the muni bond market as some municipalities went broke, which caused munis broadly to take a lot hits.
Munis are not a 'flight to safety' asset.
Statistics: Posted by Northern Flicker — Thu Nov 07, 2024 1:23 am — Replies 48 — Views 1891
