What Municipalities are Higher Risk?

Data as of July 25, 2013

What Municipalities are Higher Risk?

The bankruptcy of the City of Detroit has raised questions about what other municipalities might be the next to focus on.  In general, bonds with higher yields are riskier than bonds with lower yields.  Using bond yields as the sole variable, the following general obligation municipal bond issuers have the highest yielding bond issues* in the S&P Municipal Bond Index:

Maverick County, TX

Scranton, PA

Central Falls, RI

Northern Mariana Islands

Woonsocket, RI

Bellwood, IL

Riverdale, IL

Harvey, IL

*Review focused on bonds issued by and are the general obligation of counties and cities. No district, special tax or land backed bonds were reviewed.  Only bonds that have not previously defaulted on principal and or interest are listed. 

Market Performance:  

 

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