Morgan Stanley analysts point to rapidly increasing leverage, unusually high unemployment, shocks to revenue streams, and high pension and other post-employment benefit burdens as factors that can lead to municipal bankruptcies.

In “Muni Bankruptcy: More Lessons,” head of municipal strategy Michael Zezas and a member of his teamwrite that they expect local bankruptcies in the near future to rise but remain “modest and idiosyncratic.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.