• / Free eNewsletters & Magazine
  • / My Account
Home>The Berkshire Hathaway Municipal CDS Unwind

The Berkshire Hathaway Municipal CDS Unwind

Perspectives Content Submission

Tue, 28 Aug 2012

Warren Buffett’s Berkshire Hathaway recently generated headlines when the company terminated $8.25 billion of credit-default swaps (CDS) they sold to investors seeking insurance against municipal bond defaults. In explaining the CDS unwinds, Buffett put forth a theory that recent bankruptcies by a

Related Videos

  1. Yellow Flags for Nonrated Munis

    Despite their extra income, nonrated municipal bonds can expose investors to lower-credit-quality, less-liquid issues with a tremendous research requirement, says Morningstar's Eric Jacobson.

  2. Keep an Eye on Muni Calls

    As the Fed intends to keep interest rates low for the next few years, muni-CEF investors should maintain a close watch on their funds' call exposure.

  3. Muni CEFs Still Safe Source of Income

    Despite risks in the muni- bond market , defaults are isolated, and the diversification in muni CEF portfolios helps protect against credit problems.

  4. Will the Next Municipal Shoe Drop on Bondholders?

    Despite the scare of recent bankruptcies and downgrades, municipalities have the resources to continue making bond payments, while looming tax increases likely won't affect muni demand, says Morningstar's Jeff Westergaard.

©2017 Morningstar Advisor. All right reserved.