Municipal Bonds

  • 2008 0312 – GOV (House) – Municipal Bond Turmoil: Impact On Cities, Towns, And States – [PDF-262p, VIDEO-?]
  • 2012 0815 – FRB-NY – The Untold Story of Municipal Bond Defaults – [link]
  • 2021 0709 – Moody’s – US municipal bond defaults and recoveries, 1970-2020 – 113p
  • An interesting question arising in third-party guaranteed defaults is what happens when the guarantor collapses?
  • When the letter-of-credit bank or insurance company goes under, or the corporate guarantor goes bankrupt, there is no more credit enhancement or guarantee on the bond issue.
    • In these instances bondholders usually lose.
  • Such was the case with the $1.6 billion of munis backed by Executive Life and the $600 million of housing issues backed by Mutual Benefit Life Insurance Company.  (p150)

— C. Richard Lehmann, President – Bond Investors Association From 1994 “The Handbook of Municipal Bonds” CHAPTER 33: Municipal Bond Defaults

1995 0726 and 0727 – GOV (House) – Debt Issuance and Investment Practices of State and Local Governments, Richard Baker (R-LA) – [PDF-1011p-GooglePlay]