Borrowing costs for highly-rated US states, cities and other public entities have dropped from the crisis levels of last year to below historical norms, reflecting demand from retail investors as well as federal subsidies for the $2,700bn municipal bond market. Yields on double-A rated muni bonds at the end of last week were 4.20% for 20 years compared with an average of 4.77% over the past decade.

This entry was posted by Gwen Robinson on Monday, August 24th, 2009 at 4:51 and is filed under Capital markets. Edit this entry.