Muni Deals Lure $1 Trillion Market With a Shift to Shorter Debt
Construction on the Sixth Street Viaduct replacement project in Los Angeles.
Photographer: Bing Guan/BloombergA shift is afoot in how US municipal borrowers structure their debt sales.
Typically, state and local issuers favor longer maturities of 20 to 30 years, giving them more time to repay — akin to a homeowner with a 30-year mortgage. The University of Denver, for example, sold bonds this month maturing in 2056 to build laboratories and athletic facilities.