America’s states and cities are finally seizing on record-low interest rates to finance needed work on roads, bridges and schools.
After borrowing costs tumbled worldwide as central banks sought to jump-start their economies, agencies from New York to California have sold about $272 billion of bonds this year and are funneling more into construction projects, instead of just paying off higher-cost debt. That’s put the municipal market on track to approach the record level of sales reached in 2010, when the federal government was seeking to hasten the nation’s recovery by footing some of the bills on debt issued for public works.
“That’s going to be the story for the year — rebuilding infrastructure,” said Mikhail Foux, head of municipal strategy in New York for underwriter Barclays Plc, which forecasts that issuance may reach $400 billion this year.
Keep reading this article at: http://www.bloomberg.com/news/articles/2016-08-26/long-awaited-muni-bond-infrastructure-spending-comes-to-fruition
