[quote=flu]I guess it was a good thing that I got out of the Vanguard CA tax exempt municipal bond fund a few years ago that is stacked high with PG&E’s bond…
I wonder how that’s going to play out.[/quote]
Out of $415 m Vanguard owns, $413 m is insured, only $2 m subject to loss. Considered it is owned 3 funds with combined assets over 25b, the 2m possible loss is basically negligible. Even within 2 m possible loss, muni recovery rate is still high enough on get decent percentage out of the 2m back.
When Detroit went bankrupt, Vanguard also had large positions, but lost nothing in the end because the positions were insured.
