Issuers See Short-Term Refinancing Risk.

The article cites a report from Fitch Ratings Ltd. indicating that municipalities borrowing short term are increasingly taking on refinancing risk in the U.S. The rating agency notes that the municipalities are increasingly relying on bond anticipation notes and extendable-maturity commercial paper for short-term financing. Fitch managing director Karl Pfeil states that commercial paper and note markets have grown because issuers want access to the low rates on the short end of the yield curve.