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Posts Tagged ‘municipal defaults’

Auction-Rate Securities and Municipal Market Dislocation

Posted by Larry Doyle on January 13th, 2011 9:39 PM |


The demise of the $330 billion auction-rate securities market may have culminated in February 2008 but the impact of that reality continues to be felt today. How so?

Large segments of the ARS market provided financing for a wide array of municipal entities. How did those municipal entities receive financing when the ARS market froze? Reports indicate that bank letters of credit (LOCs) provided ongoing financing for many municipal borrowers. Now what?

As those LOCs are rolling off, banks are extremely reluctant to roll them forward and impending default is staring many of these municipal borrowers right in the face. The capital markets are not anxious to provide liquidity and banks are equally reluctant. Thus while the Federal Reserve throws support behind many market segments, the municipal market has retraced back to levels last seen in early 2009. (more…)

State Budgets: Day of Reckoning

Posted by Larry Doyle on December 19th, 2010 9:09 PM |

For those who may have missed CBS News 60 Minutes this evening, there was a fabulous segment on the impending disasters within our municipal finance sector. This piece entitled State Budgets: Day of Reckoning runs for approximately 14 minutes and is a MUST SEE.

The problems embedded within a number of states and across hundreds–if not thousands–of local municipalities are not going away. Will Uncle Sam need to provide another trillion dollar bailout? Will ‘red states’ be asked to bail out ‘blue states’, perhaps starting with Illinois? Let’s navigate.

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own and not those of Greenwich Investment Management. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

Will States, such as California, File Chapter 9?

Posted by Larry Doyle on December 3rd, 2010 6:38 AM |

Are those large waves roiling the world of municipal finance–and centered on California–to be feared?

Are they an indication of an oncoming tsunami? Or are they to be discounted and taken as just another  “Hey, dude, don’t worry. Surf’s up!!”

Well, perhaps those less concerned about what is just ‘off the coast’ may care to ‘break out their boards’ but prudence dictates we take a harder look at what is causing the recent waves in the world of municipal finance. These factors include: (more…)

Lots of Laughs and ‘Sense on Cents’ With New York’s Bravest

Posted by Larry Doyle on September 14th, 2010 7:25 AM |

How often do we not remember what we did last week, while never forgetting the jokes told and the 3-putt greens in the midst of friends at a charitable golf outing? I was fortunate yesterday to play in a local charity golf outing with some of New York’s Bravest. While the funds raised were not for the benefit of the NYFD itself, the fact that I was able to spend time in their company was awesome. Reminiscing about past golf outings while simultaneously making new memories which we can share in the coming years was spectacular.

As has happened in the past, and given that this outing occurs shortly after 9-11, our conversation included recollections of that fateful day. The depth of their feelings and memories of so many lost friends and fallen comrades are truly palpable. May we never forget. I am not writing today to rekindle those memories, but I do feel compelled to pay respect to all those members of the NYFD and NYPD who made the ultimate sacrifice that day.

While  the best memories from a day like yesterday are from the interaction with The Bravest, other members of our respective groups are also top shelf and actively involved in the markets. While there is plenty that occurs on a golf course that is best left on the golf course, in the midst of lost balls and missed putts, there were plenty of comments and opinions on our markets and economy. While I lost my share of golf balls, I picked up plenty of insights including: (more…)

Will Miami Declare Bankruptcy?

Posted by Larry Doyle on May 27th, 2010 11:34 AM |

Are the ‘waves’ of municipal debt breaking on Miami about to overwhelm the city and force it to declare bankruptcy? Do not rule it out. If Miami goes this route, will that cause a domino effect for other municipalities around the country, including Los Angeles?

The risk of bankruptcy is very real. Thanks to a loyal Sense on Cents reader for bringing the impending financial doom in Miami to our attention. While municipal finances in our country encompass a whole set of issues, a common denominator is the crush of pension liabilities accrued by unions. (more…)

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