Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Now what happens - Munibond Alert Dissolution?
Old 01-14-2012, 06:59 AM   #1
Recycles dryer sheets
Earl E Retyre's Avatar
Join Date: Jan 2010
Posts: 277
Now what happens - Munibond Alert Dissolution?

I received an event alert indicating that there has been a "dissolution" of my Highland California Redevelopment Agency municipal bond. I tried calling Fidelity and of course the fixed bond desk is closed until next Tuesday. The bond is insured by AMBAC. Does anyone have any knowledge of what happens? Am I guaranteed back by principal? When?

Earl E Retyre is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-14-2012, 07:11 AM   #2
MichaelB's Avatar
Join Date: Jan 2008
Location: Gone fishing
Posts: 25,787
California is allowing the redevelopment agencies to be closed. That is probably the "dissolution" mentioned in the notice you received. According to this article California RDA Law Upheld - The Bond Buyer Article there is no intention to default or not repay the outstanding obligations. Your bond should continue to be mature and pay coupons as agreed.

According to the state’s reading of the law, when the agencies are shut down, the money to pay debts would be put in a special fund and bondholders would get paid, said H.D. Palmer, a spokesman for the Department of Finance. In this year’s state budget, the state directed that $5 billion should go toward payments on the bond debt, Palmer said. The state expects to have $1.7 billion left after the bond payments are made to fund other state budget items. The state’s 400 RDAs have $20 billion of bonds outstanding.
The insurance is an additional guarantee. Relax and enjoy the weekend.

MichaelB is online now   Reply With Quote
Old 01-14-2012, 07:25 AM   #3
Recycles dryer sheets
Earl E Retyre's Avatar
Join Date: Jan 2010
Posts: 277
Awesome. Thanks, Michael, for the quick reply.
Earl E Retyre is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 10:23 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.