Subprime’s Latest Victim: Municipal Bonds
Jun 2nd, 2008 | By Contrarian Profits | Category: Featured, Financial NewsSubprime has found a new victim, reports Bloomberg: municipal bonds. Already, the amount of municipal bonds that have defaulted this year is three times that of 2007.
So far this year, $736 million in municipal bonds have defaulted. That doesn’t necessarily mean they didn’t pay investors; they may have just drawn down reserves. That’s what happens just before they stop making payments to bondholders.