To assist community banks with ongoing monitoring of their municipal bond holdings, Bankers’ Bank has two new free reports available to our portfolio accounting clients:
MuniMonitor applies a process for identifying bonds with higher risk characteristics during the holding period. Higher-risk bonds have characteristics that could potentially cause them to not meet credit quality standards. Characteristics include: bond type, location within a state suffering economic stress, market price, poor ratings, negative outlooks, and limited data.
Municipal Inventory lists detailed information about municipal bond holdings. Detail includes issue and underlying ratings as well as repayment source, purpose, county, and market price.
Once a potentially higher-risk bond is identified, whether through this process or your own internal process, you can decide whether it is prudent to apply a more rigorous credit analysis in order to draw a conclusion about its risk and suitability.
For more information please contact the Investment Department at 800-955-4468.