How Municipal Bond Markets Have Reacted to Pension Reform.

• Position: News & Numbers - Brief article

Municipal bond rating agencies have begun accounting for public pension funding and have cited pensions in several downgrades, according to research from The Center for Retirement Research at Boston College. As a result, state and local governments' pension finances could threaten their ability to borrow at affordable rates. The study, which examines the impact of both pension finances and pension reforms on borrowing costs from 2009 to 2014, shows that a higher ratio of unfunded...