This month saw more of news about financial market volatility. The Month’s municipal bond news included:
- 10/12: Harrisburg Files for Bankruptcy on Overdue Incinerator Debt – Businessweek. – They finally decided to declare bankruptcy in Harrisburg, Pennsylvania. This is the biggest city to file bankruptcy since Vallejo, California. The municipal bond market had priced in bankruptcy for their bonds anyway. An incinerator’s debt force them down this road.
- 10/19: States Attract Buyers for Muni-Bond Issues – WSJ.com. – California got relatively aggressive pricing on their 10 year muni bonds at 3.51%, while Pennsylvania got 2.63% on their 10 year offering.
- 10/28: State Tax Haul Jumps 10.8% – WSJ.com. – State tax revenue jumped 10.8% in the latest quarter as compared to a year ago. This means that states are feeling better financially. Cities on the other hand are having more problems, as property tax collections continue to fall. Keep these facts in mind when examining individual municipal bonds.