Credit enhancement of municipal debt

Authors

  • Mark Gilbert,

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      Mark Gilbert is a municipal adviser with Nova Scotia's Department of Municipal Affairs, and is completing doctoral studies on the topic of credit enhancement of municipal debt at the University of Bradford. Richard Pike is a professor of finance at the University of Bradford.

  • Richard Pike

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      Mark Gilbert is a municipal adviser with Nova Scotia's Department of Municipal Affairs, and is completing doctoral studies on the topic of credit enhancement of municipal debt at the University of Bradford. Richard Pike is a professor of finance at the University of Bradford.


Abstract

Abstract: The municipal bond bank (mbb) innovation began in Canada in 1956 and in the United States in 1970. This paper concentrates on why mbbs exist, their characteristics, where they work best, and how they compare with other municipal debt credit enhancement techniques. It concludes with a discussion of the future role these organizations will have in providing long-term capital funding to municipalities in Canada and the United States.

Sommaire: Le principe de la Banque d'obligations municipales (BOM) fut introduit en 1956, au Canada et, en 1970, aux États-Unis. Cet article explore la raison d'être des BOMS, leurs caractéristiques, leurs conditions de succés maximum et les compare à d'autres techniques pour rehausser le crédit de la dette municipale. L'article se termine par une discussion sur le rôle que ces organisations auront à l'avenir dam le financement capital à long terme des municipalités au Canada et aux États-Unis.

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