Status of Municipal Bonds in Limbo: The...
Status of Municipal Bonds in Limbo: The status of $1.85 billion in municipal bonds of agencies in Louisiana, Texas, Colorado, Tennessee and Nebraska was thrown into limbo when California and New York regulators seized First Executive’s two largest life insurance subsidiaries, authorities said. The municipal bonds’ proceeds were used to buy guaranteed income contracts from the First Executive subsidiaries. As long as the guaranteed income contracts and their interest payments are bottled up, bondholders won’t get returns.
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