As someone interested in buying municipal bonds, safety is and should be your paramount concern. It will help you to know the history of defaults over the past 40 years. The research that we are going to reference is a recent report from Moody's analyzing defaults from 1970-2009. In this report, Moody's looked at every single bond default on municipal bonds rated by Moody's since 1970. Out of thousands of bond issues rated by Moody's over this time period, there have been a total of 54 bond defaults over the past 38 years.
Of the 54 defaults, 3 of the defaults were on general obligation debt.
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