After achieving peak revenue of $1.5 billion in 2007, the municipal bond insurance business collapsed in the wake of the financial crisis. More recently, the industry has started to recover, with three market participants seeking to write new policies. Our study asks whether municipal bond...

Municipal bonds have traditionally been considered, rightly or wrongly, mundane assets that require little regulation. However, the most recent financial crisis did not leave municipal bonds untouched. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and liquidity...

I examine how liquidity risk affects municipal bond pricing. Liquidity has become a central concern to municipal bond investors, issuers, and regulators since the recent collapse of the monoline municipal bond insurers. The results show that liquidity risk had a minimal effect on yield spreads...

For years, municipal bonds were considered “safe” investments. The perception of safety combined with political considerations meant that municipal bonds have traditionally not been subject to heavy regulation. However, as a result of the 2008 financial crisis and some high-profile municipal...