US public pension deficits driving muni yields

Untied states


Nearing the end of his seven years as governor of the Golden State, Arnold Schwarzenegger proved he was no "economic girly man" by raising some $14 billion (£8.8 billion) for his troubled state's budget during a sharp downturn in the market for US public debt.

The vast quantities of US public debt issuance in the years since the financial crisis began in 2008 – $160 billion in the past 19 months alone – have been issued to the same relatively small set of investors, mainly funds trading on behal