April 07, 2020

Amid Coronavirus, Investors Need to Understand Credit Quality Now

Laura Appleby authored an article for The Bond Buyer about how the COVID-19 pandemic is impacting municipal bonds.

In the article, Appleby states: in addition to traditional revenue bonds issued by municipalities, project financing supported by tax-exempt bonds could also be adversely affected. This is because in the typical project finance scenario, the underlying debt is supported by user fees or increased tax revenues associated with the project. For investors in the secondary market and long-term holders of revenue-backed financings, now, more than ever, it is important to understand the underlying credit supporting the revenue-backed financing and to prepare for a potential restructuring scenario.
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