Municipalities and Their Hidden Debt Risks: Direct Bank Loans
U.S. financial regulators are examining the rising use of private loans to state and local governments that allow public officials to take on added debt without disclosing it to municipal bond investors. Direct bank purchases - private loans to a municipal bond issuer - have increased rapidly in number over the past 12 to 24 months.
In a special report, Michael Pietronico of Miller Tabak Asset Management examines municipalities' hidden debt risk. Click here for Pietronico's analysis.