Kind of funny the financial media hasn’t freaked about municipals

Most state and local governments had been on a historic spending spree with capital projects during Trump’s wildly good economy. And investors who had non-existent concern for risk were buying all the bonds they could get their hands on, even from state and local governments that were functionally insolvent because of their pensions and health care costs in roaring times.

With state and local governments spontaneously nuking their tax bases for an indeterminate period of time, we might be looking at quite the credit event in municipals. Which is amazing, because that’s usually the area of the market where investors have the least risk tolerance and the highest dependence on a stable income stream.

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