US public pension deficits driving muni yields

Untied states

arnold-swarznegger-pa

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