The Public Purse offers you serious thinking about economic, financial and political trends at the U.S. state and local level with a focus on municipal credit risk
CAT | housing mess
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Municipal Market Thoughts
1 Comment | Posted by Natalie Cohen in housing mess, migration, municipal bonds
Why is the municipal market selling at such a premium? I have been asked this question several times in the last few weeks — not by career municipal analysts at mutual funds or rating agencies, but sophisticated investors who are trying to make sense of the asset class. The counterpoint is coming from writers forecasting [...]
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Municipal Market Meltdown? Response to Bookstaber
5 Comments | Posted by Natalie Cohen in Budget and Finance, Voter initiatives, bankruptcy and default, bond insurance, housing mess, municipal bonds, pensions, securities lending, states
We have two opposing camps in the muni-market at the moment: those who say it is the next systemic shoe to drop and the rating agencies that are systemically raising ratings.
Which is right?
We have moved from a market that has had heavy intermediation from the bond insurance companies to one where investors are on their [...]
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From Mortgage Resets to Mortgage Recasts
0 Comments | Posted by Natalie Cohen in housing mess
A particularly toxic form of adjustable rate mortgage is going to hit the headlines in the spring and summer of 2010 with defaults, foreclosures and workout discussions extending into 2012. “Option ARMs” also known as “Pick-a-pay” allow the borrower to choose how much to pay each month and reports indicate 94% of all borrowers paid [...]