How to make money in municipal bonds

Given the turmoil that has engulfed the bond insurance market, investors may be surprised to see Warren Buffett sniffing round the sector. But it looks like he's probably spotted a new opportunity to clean up - so how can you do the same?

Given the turmoil that has engulfed the bond insurance market, investors might have been surprised to see billionaire Warren Buffett sniffing around the sector recently. But rather than buy any of the existing insurers, he has launched the Berkshire Hathaway Assurance Corporation, offering municipal bond insurance, and has already underwritten around $10m of outstanding New York City debt due to mature in 2012.

It seems a bold move concerns over the health of large rivals, such as Ambac and MBIA, have been partly to blame for the stockmarket turmoil of recent months. But Buffett's track record suggests he has probably spotted another opportunity to clean up. So how can you do the same?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.