Crain' s New York

Sleepy municipal-bond market goes 'dystopian'

In fact, New York municipal bonds of all stripes are getting thumped as investors brace for the full economic impact of Covid-19.

“The word I use is dystopian,” said Matt Fabian, a partner at Municipal Market Analytics, an independent research firm.

Muni bonds are ordinarily among the market’s safest investments, with a default rate of 0.18%, and New York’s bonds are considered best-in-class. The credit ratings for New York City and the state are both one notch below AAA, according to Moody’s, which on Feb. 20 praised the state for taking “proposed strong measures to correct its unfavorable spending trend.”

https://www.crainsnewyork.com/coronavirus/sleepy-municipal-bond-market-goes-dystopian