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
TAG | non-rated bonds
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Xenia Defaults, the USDA, Bond Insurance and Novation
3 Comments | Posted by Natalie Cohen in bankruptcy and default, bond insurance, municipal bonds
Add Xenia Rural Water District’s to the short but growing list of over-leveraged municipal borrowers. With $143 million in debt and about 9,000 customers, the unfolding socio-gram includes bondholders, bond insurers CIFG and Assured Guaranty, the US Department of Agriculture, Bank of America, and last, but not least, the ratepayers. A $5.2 million note to [...]
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Insured, but non-rated municipal bonds
3 Comments | Posted by Natalie Cohen in bond insurance
In the aftermath of the bond insurance meltdown investors found that many of their holdings did not have an underlying rating. Most are small borrowings and in smaller, lower profile communities across the U.S. landscape. Among them are some gems that are navigating the difficult waters of the great recession. However, there are also some [...]