Posts Tagged ‘muni bonds’
Drop Your Pants…Debt Will Be Cheaper
October 29th, 2009 | 
Author: 
Bloomberg published an informative article yesterday highlighting the reasons why debt financing is so much more expensive for governments than private companies. You would think that governments that NEVER default on debt issuances and have unlimited tax revenue could issue debt at a cheaper cost than private companies. Municipal bonds, however, are often issued at rates anywhere from 100 to 150 bps higher than private companies. What’s the reason for this? Moreover, what lessons can an owner/investor of commercial real estate learn about debt financing from the municipal bond market?
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Posted in Banking & Finance, Owners & Developers | 
Tags: bonds, cheap financing, creditor, debt, debtor, interest rates, muni bonds, municpal bonds, perception, Rishy Mehrotra, risk, sponsor, transparency, yields | 
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