SAN FRANCISCO - The citizens of Hardin, Mont., thought that a privately run jail facility would generate economic activity and jobs for their community of about 3,300 people. The investors who purchased the revenue bonds that financed the jail got yields of up to 7.625% tax-free.

The way things are going, none of them may get what they bargained for.

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.