Originally Posted by
corktownyuppie
That's a dangerous statement because the premise -- that the bonds are reading near par -- does not necessarily lead to the conclusion, that the market still considers them "safe".
For example, a US Treasury bond [[which for the purposes of market valuation are considered the benchmark for safest bonds) yielding 8% maturing in 5 years might trade at 45% over par...$14,500 for 10,000 face.
If you found a municipal bond with the same yield and maturity pricing near par, it's not because the market thinks it is safe, rather that the market considers it unsafe.
Last I looked, DWSD bonds were trading at about the same price as most comparable bonds rated BBB. So well above where the City of Detroit bonds. But certainly not somewhere of call "safe". This information may be dated.