Only in Texas is water and sewer funded this way. You have to look at each district seperately. Harris Cty MUdistricts are either in Houston or the surrounding area. Most populous county in the state and one of the most populous counties in the country.

  Generally speaking i like them, but you have to look at each district seperately. My Texas bond desk is led by a very experienced trader, which gives me some peace of mind. Also, the districts have to meet some tough liquidity standards for us even to consider putting them into inventiory. Still, before i jump at the high coupons and yields offered by these bonds I always call the desk to nail down exactly what i'm buying. I'd suggest you do the same.   If push comes to shove, the insurance rapper may be worthless. I always sell off the underlying. To be clear, the insurance isn't worthless and most likely will offer protection. i'm saying don't count on it.   good luck- go get'em!