Tribal bonds fall off
NEW YORK – Chalk up another victim of the Great Recession – tribal bond finance.
Tribal bond issuance, after peaking at $577.6 million in 2007, has declined sharply since, according to data compiled by Thomson Reuters.
Volume fell by more than half in 2008, to $271.8 million, and by more than half again in 2009, to $77.2 million.
This year, to date, tribal governments have issued a tiny $2.8 million in bonds.
Before 2007, the biggest year for tribal government bonds was 2003, when $466.8 million were issued, according to Thomson Reuters.
Since 2001, tribes have issued about $2.7 billion in bonds, and a mere $4.6 million in notes.
While that represents an advance on previous decades, a look at state government issuance shows a glaring disparity.
State governments issued nearly $400 billion in bonds during the decade. That’s more than 150 times tribal government volume.
Tribes have used bonds to finance casinos and other economic development projects.
A provision in last year’s federal stimulus bill was designed to spark tribal bond issuance.
You need to be logged in in order to post comments
Please use the log in option at the bottom of this page