Municipal Bond Forum
Belt tighening, not lack of confidence, shrinks supply
Q
Why is the availability of bonds so restricted? What will it take to restore municipal issuers’ confidence?
A
James A. Klotz responds:
The lack of supply in the market is not a matter of issuer confidence. In fact, there has never been a better time to borrow.
The scarcity to which you refer is a reflection of the efforts of states and cities to tighten their belts in this economic environment.
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