MUNICIPAL MARKET BRIEF: Swarthmore Sells; New Risk Factor

Joining the long list of things bond investors have to keep in mind is this new Risk Factor: Volatility in the banking sector. Or, as it says in a California Municipal Finance Authority deal: “Current financial market and economic conditions including high inflation and related actions by the Federal Reserve Bank to raise interest rates to combat inflationary pressures have exerted, and may continue to exert, significant pressures on the finances and operations of certain regional banking institutions.” And if those pressures become too great and the Federal Deposit Insurance Corp. has to step in, remember that FDIC insurance only ...