[quote=Fearful]LOL, I would have sold you mine. I unloaded them a couple of months ago, precisely because I figured their revenue would be in jeopardy, and the insurers would start to default, sooner or later. I still have some but they are in small chunks and hence (knock wood) risk is not too high.[/quote]
Yeah, you unloaded you bonds and lost a LOT of money. CA munis don’t default, for the most part. A study was done that indicated that 1 in 12,000 A- rated or better CA munis have the chance at a default. And even when they default, chances are you will still get your principal + interest back, eventually. Selling your bonds was the wrong thing to do. They are a buy and hold investment.
But, by you selling, that gave a more savvy investor the opportunity to pick them up at a discount and make a pretty penny off of you.
