A decision by Warren Buffett's Berkshire Hathaway Inc. to
end a large wager on the municipal-bond market is deepening questions from some
investors about the risks of buying debt issued by cities, states and other
public entities, writes the WSJ..
The Omaha, Neb., company recently terminated credit-default
swaps insuring $8.25 billion of municipal debt. The termination, disclosed in a
quarterly filing with regulators this month, ended five years early a bullish
bet that Mr. Buffett made before the financial crisis that more than a dozen
U.S. states would keep paying their bills on time, according to a person
familiar with the transaction….
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