U.S. Municipal Bond Defaults Rose in Past Two Years
The rate of U.S. municipal bond defaults doubled in the past two years relative to the average from 1970 to 2009 amid the lingering effects of the recession, Moody’s Investors Service said.
Defaults rose to 5.5 per year in 2010 and 2011, from 2.7 in the previous 39 years, the company said in a study of bonds it rates. While the majority of defaults were in health care and multifamily housing, more failures the past two years came from smaller cities struggling to sustain services and obligations including pensions and salaries, Moody’s said in a report released today.
http://www.bloomberg.com/news/2012-03-07/u-s-muni…
Who will bail them out?
