The municipal securities market is widely misunderstood by commentators, investors, issuers, regulators, legislators, and even many market professionals.
In reality, the market consists of two vastly different markets. One market is traditional municipal securities that are very sound and are secure, with extremely low default risks. The other is a market of readily identifiable, much riskier securities dependent primarily upon private performance (profit and nonprofit) or issued for start-up or rapidly expanding projects. That second municipal securities market deserves significantly greater attention from everyone.