Financial Advisor
Junk-Muni Boom Sets Up Historic Distress For Billions Of Debt
This year, more than 50 municipal-bond issues worth $5 billion have defaulted, the most since 2011, according to Municipal Market Analytics, an independent research firm. Nearly two dozen more have drawn on reserve funds since the start of the year to cover debt payments when revenue fell short, a potential sign of more stress to come, according to data compiled by Bloomberg.
“They’re really just starting,” said Lisa Washburn, chief credit officer at Municipal Market Analytics, which tracks municipal-bond defaults. “It was just more than the deals could handle.”
https://www.fa-mag.com/news/junk-muni-boom-sets-up-historic-distress-for-billions-of-debt-57491.html