With direct federal support to state and local governments continuing to decrease, and the lack of a clear vision from Congress or the administration on a path forward for infrastructure, the importance of the municipal bond
market cannot be overstated.
He says municipal bonds
currently are a "giveaway" for investors.
Aside from floating municipal bonds
, an LGU has several options for funding a local infrastructure project.
Individual municipal bonds
offer a more attractive investment opportunity for many people.
Both budgetary and asset-based financial reporting should be easily accessible." Reuters reports that former Federal Reserve Chairman Paul Volcker and New York Lieutenant Governor Richard Ravitch -- the two economic bigwigs that led the Task Force -- have called for more aggressive regulation on local and state-level municipal bonds
in order to encourage proper documentation, budgeting, and reporting on state and local levels.
"Tax-exempt municipal bonds
are a critical financing tool for clean water agencies and their communities across the country," said NACWA Executive Director Ken Kirk.
There still exists a fanatical constituency that adamantly believes widespread municipal bond
defaults aren't possible.
For instance, Moody's reports that between 1970 and 2011, only 71 of the municipal bonds
it rated defaulted, while S&P records only 47 such defaults between 1986 and 2011.
After a municipal bond
refunding, the issuer uses the proceeds of the new issue to purchase highly rated collateral, such as U.S.
"For years now, since 2007, I have been asking you to buy municipal bonds
," Orman remarked in a recent meeting with reporters.
We study the implications of market segmentation in a domestic setting, the US municipal bond
Since 2000 the total outstanding state and municipal bond
debt, adjusted for inflation, has soared from $1.5 trillion to $2.8 trillion (see chart).