Muni Auction Market Shrinks
Published April 28th, 2008
U.S. municipal borrowers from New York to Los Angeles pushed down yields on auction-rate bonds to the lowest since February by moving to eliminate $55.3 billion, or 33 percent, of the debt they had in the market.
Washington, D.C., Miami-Dade County and other local governments disclosed plans to redeem 136 tax-exempt auction issues totaling more than $7 billion last week, according to Siebert Brandford Shank & Co., an investment bank with offices in Oakland, California, and New York. That’s the most since the $166 billion municipal auction market began falling apart two months ago, the firm said.
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