DALLAS - New housing starts are down and home foreclosures are up across the country, but some Texascommunitiescontinue to expand using relatively small bond issues sold by municipal utility districts to provide the infrastructure for new development.

Those associated with issuing MUD bonds say demand for the low-rated or even unrated debt remains strong despite the credit crunch. They say there are fewer bidders of late, but the bids received reflect steady interest from buyers looking for uncomplicated tax-exempt securities.

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.