U.S. Muni Market: Political & Governance Risk (Part 1)

By:

Senior Market Analyst at Interactive Brokers

IBKR senior market analyst Steven Levine discusses political and governance risk issues with Ed Grebeck, global debt strategist and CEO of Tempus Advisors. In this first of a three part series, Grebeck defines the difference between what constitutes a political versus a governance risk and highlights why he believes individual investors may be more adept than ratings agencies to evaluate them.

He also provides some examples of governance risks in the muni market that may ultimately lead to losses for muni bond investors, including unfunded pension liabilities and sanctuary cities.

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Produced on February 12, 2020

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