8/28/2023 0 Comments Muni defaults![]() They explore municipal debt as “a condition of financialized racial capitalism” by investigating the massive debt the Detroit Water and Sewerage Department had taken on by 2014. Ponder and Mikael Omstedt argue that glaring examples of racial physical violence in cities, such as police killings of Black men, “are often underwritten by more abstract forms of financial violence.” The Violence of Municipal Debt: From Interest Rate Swaps to Racialized Harm in the Detroit Water CrisisĬ.S. The five studies that follow explore how municipal bond mismanagement can have disparate impacts on different racial groups, how climate change and aging populations affect bond interest rates, and provide insight on how credit ratings agencies - which can save or cost municipalities tens of millions of dollars - assess municipal credit risk. They are also inextricable from local history, politics and forces beyond the control of a particular government - such as systemic racism. Munis may be the reason a new school is built or an aging bridge is replaced. ![]() But these financial instruments have a direct effect on the social and cultural character of cities, metropolitan areas, counties and states. ![]() !function(e,i,n,s)(document,0,"infogram-async") Ĭovering municipal bonds may seem, at first glance, as fun as chewing boiled cardboard. Federal Reserve said it would buy up to $500 billion worth of bonds from states, counties and cities, which have three years to pay back the Fed. Municipal bond issuances rebounded in April after the U.S. There’s about $4 trillion worth of bonds held in the municipal market today, up from $1.2 trillion in 1996, according to data from SIFMA, a security industry trade association that tracks municipal bond data.ĭespite a dip in municipal bond issuance around the start of the coronavirus recession and recent defaults of some municipal bonds, year-to-date there’s been nearly $50 billion more in municipal bonds issued across the country, a 23.7% increase. The municipal bond market is huge and has grown exponentially in recent decades. Another reason investors buy municipal bonds: They typically don’t have to pay federal income tax on interest money they accrue. ![]() ![]() From 1970 to 2016, 0.18% of municipal bonds defaulted, compared with 1.74% of corporate bonds that companies issued, according to the Municipal Securities Rulemaking Board, a non-governmental organization that regulates the market. Municipal bonds - also called “munis” - are attractive to some investors because states, counties, cities, school districts and other government organizations are unlikely to default. Municipal bonds are loans state and local governments use to pay for everyday expenses and infrastructure projects that can take years to complete. Municipal bonds: 5 studies on racism, climate change, aging populations and credit ratingsīy Clark Merrefield, The Journalist's ResourceĪugMunicipal bonds: 5 studies on racism, climate change, aging populations and credit ratingsīy Clark Merrefield, The Journalist's Resource August 21, 2020 ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |