Debate rages over muni bond defaults
Financial Times London Jan 12, 2011
"The economic recession and financial crisis has shone a light on perennial deficits and chronic under-funding of public pensions.
Investors are demanding higher interest rates to lend to Illinois than to any of the other 50 states.
Ten-year bonds backed by the full taxing power of Illinois yield 5.37 per cent, nearly a full percentage point more than deficit-plagued California and more than two percentage points over the most highly rated municipal bonds, according to Thomson Reuters MMD." http://www.ft.com
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