
Fabozzi-style reference covering credit, structure and analytics.
The reference has not verified this book in detail; the summary states only what the title, author and subject establish.
Feldstein and Fabozzi edited a comprehensive reference on the American municipal bond market, with chapters contributed by practitioners covering the instruments, the credit analysis, the market structure and the legal framework. The reference has not verified the individual chapters.
The subject divides into distinct areas. The instruments include general obligation bonds backed by the issuer's taxing power, revenue bonds backed by a specific project's receipts, and the many specialised structures covering water and sewer, transportation, higher education, healthcare, housing and industrial development. Credit analysis differs by type: a general obligation credit turns on the tax base, the local economy, the debt burden per capita and the pension obligations, while a revenue credit turns on the project's economics, the rate covenant and the debt service coverage.
The tax treatment is the market's organising feature. Interest on most municipal bonds is exempt from federal income tax and often from state tax for in-state holders, which means the buyer base is dominated by individuals and by tax-sensitive institutions, and yields trade at a ratio to Treasury yields determined by the marginal tax rate of the buyer at the margin.
Other material covers bond insurance and its role before the crisis, the disclosure regime which differs substantially from corporate securities, the primary market and competitive versus negotiated sales, secondary market liquidity, derivatives and refunding structures.
The 2008 edition predates the collapse of the monoline insurers, the auction rate securities market failure, the Detroit and Puerto Rico defaults, and the tax changes affecting advance refunding. Readers should verify against current market structure.
Practitioners in municipal finance who need a comprehensive reference on instruments and credit analysis, verified against post-crisis market changes.
Finance professor and longtime editor of the Journal of Portfolio Management, who writes and edits the standard fixed-income handbooks.
The handbooks define how bond, mortgage and preferred-stock markets are measured: cash-flow mechanics, duration and convexity, credit structures, and the pricing conventions desks actually use. Practitioners and CFA candidates work through these volumes to value and hedge the instruments the equity literature skips.
Chosen by shared topics, the entries that hold them, and the people who recommended both.





