credit markets

M-Cubed: Mounting Muni Meltdown Municipal Bankruptcies Governing provides a dynamic map concerning municipal bankruptcies.  It and ZeroHedge offer plenty of commentary, so we won’t regurgitate. For perspective, however, keep in mind the size of the municipal market is $3.7 trillion.  Also, Warren Buffet has written $16 billion of municipal credit default swaps (CDS), which might imply that he believes …

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The AAA Rating Bubble

The chart provided by Financial Times yesterday regarding a “AAA Bubble” is mostly self-explanatory, although the article has some good off-links.  And, for those who want a refresher on credit ratings, a good starting point is this Wikipedia article. Financial Times; World Issuance of AAA fixed-income