Municipal Bond Default Wave - But Not in Cities

Municipal bonds are being defaulted on left and right. But the news sounds worse than it is. Few of those defaults are by cities -- for now.

1 minute read

August 13, 2009, 8:00 AM PDT

By Nate Berg


Because the definition of the "municipal bond" is somewhat loose, other non-municipal organizations like colleges and hospitals can also issue them. Many of these non-municipal entities have not weathered the recession well.

"Defaults on municipal debt increased dramatically from $329 million in 2007 to nearly $7.8 billion in 2008, according to Richard Lehmann, publisher of a newsletter that tracks defaults. Municipal defaults are once again in the billions of dollars this year. However, if you haven't heard about the wave of cities and counties that are defaulting on their financial obligations, there's a good reason why: The wave doesn't exist, at least not yet."

Saturday, August 1, 2009 in Governing

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I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

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