MUNICIPAL BONDS: HIGH YIELDS, HIGH RISK.

The article focuses on the high yields and risks of municipal bonds in 1976 in New York City. Investors are demanding record yields because of the default which can no longer be put out, and they will be able to demand and get more credit information about issuing cities and states. Moreover, if issuers do disclose information in 1976, and assuming that they not fudge their figures, the buyer of municipal bond will still have less information to go on than the buyer of a corporate bond.