July 19, 2021 5:33 PM
Private lending to US states and cities has more than doubled over the past decade. But bondholders are not told about the risks.
Between 50% and 80% of such loans are not disclosed to bondholders, despite regulations in 2019 requiring them to be reported on securities, according to a study co-authored by a senior economist at the Federal Reserve, which was presented by the latter. week in Brookings Institution 10th Annual Municipal Finance Conference. The document compares loans disclosed through