Buy and Hold (on Tight): The Recent Muni Bond Rollercoaster and What It Means for Cities

Research Report

Buy and Hold (on Tight): The Recent Muni Bond Rollercoaster and What It Means for Cities

September 20, 2011

Abstract

The often overlooked municipal debt market has attracted considerable attention lately amid predictions of widespread local government defaults and changes to the federal tax exemption for municipal bonds. This paper explains essential features of muni bonds and assesses recent policy and market developments. It concludes by offering guidelines for local decision makers regardless of how outstanding questions are ultimately resolved.

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