While many of our attractive bonds appear on our web-site, most of them never get listed on the web site, because they are immediately sold to investors who give us their parameters in advance.
The above offerings are subject to prior sale and/or change in price. All information and calculations contained herein are believed to be correct, however Stoever Glass & Co. and its employees cannot be held liable for any errors. Municipal bonds are subject to market fluctuation and may be worth less or more if sold prior to maturity. Ratings may be subject to change.
Interest rate risk--An increase in interest rates will cause bond prices to decrease and vice versa.
Market risk--Other things being equal longer term bonds have higher yield than shorter term bonds, but they also fluctuate more widely in price as interest rates go up or down.
Call risk--If your bonds are called prior to maturity you may not be able reinvest at the same interest rate.
Inflation risk--If the rate of inflation increases, your bond yield may be lower than the annual rate of inflation.
Liquidity risk--The value of an individual security can perform differently from the market as a whole. A decline in the credit quality or rating change of a bond can cause the price of a security to decrease and/or make it more difficult to find a suitable price
Timing risk--The risk that an investment performs poorly after its purchase or better after its sale.
Legislative risk--The risk that a change in the Tax Code could affect the value of tax-exempt bonds.
Quality risk/Default risk--Higher yield bonds pay higher interest but they also are of lower quality and involve more risk. A bond default occurs when the issuer fails to make an interest or principle payment within the specified period even when it is one day late.
Some types of bonds such as Nursing Home revenue bonds, some Hospital revenue and certain Industrial Revenue bonds have a much higher default risk than general obligation bonds and essential service revenue bonds.
Just because a bond defaults does not mean that the investor is going to lose all of the principle. The historical recovery rate on defaulted municipal bonds is about 67% including those referred to above.