ObamaCare heaped additional problems on state and local governments. Local governments operate many medical facilities and ObamaCare imposed new rules on these facilities that cost money.
Consequently, the price of the medical center municipal bonds have dropped by 15 to 20% in the past few months.
AA rated medical center municipal bonds now yield 5.5 to 5.75%.
Very interesting. You know your bonds. The bond explosion of the last 30 years has enabled all these counties, municipalities and other governmental entities (such as this hospital districts) to borrow much more than they should have.
This explosion in bonding was facilitated by Wall Street bond underwriters. They promoted the explosion in borrowing and bribed the Gov’t officials who chose their firm