Failed muni auctions

In recent days, over 100 bond auctions by US municipal borrowers and providers of student loans have failed to attract enough buyers amid concerns about the viability of bond insurers. Banks and dealers underwriting these sales have declined to buy the unsold debt given their already constrained balance sheets. This leaves local government entities facing sharply higher borrowing costs and some analysts say the market faces further failed auctions and possible extinction as a viable source of funding.