Pub.16 2021-22 Issue 2

NEBRASKA BANKERS ASSOCIATION 21 800.228.2581 MHM.INC Now more than ever people want self-service options. With our core integrated ITMs we can make this a reality both in the lobby and in the drive-up of your branch. SELF - SERVICE BANKING WALENTINE O’TOOLE, LLP When time is of the essence, experience counts. Walentine O’Toole blends confidence, experience and knowledge with the personal attention you can expect from a regional law firm. www.w alentineotoole .com 402.330.6300 11240 Davenport St . • Omaha, NE 68154-0125 Despite all this good news about the credit quality of the muni market broadly, some specific issuers did struggle. According to Bloomberg data, there were $2.1 billion of defaults during 2020 (0.05% of the $3.9 trillion municipal market) and an additional $4.5 billion that was considered distressed compared to only $1.4 billion of defaults in 2019 and an additional $1.7 billion that was distressed. Of the 2020 defaults, 53% were issuers in the healthcare industry and 29% were deals related to special development purposes. So far in 2021, over half the defaults are once again in the health care industry. Notably, none of the defaults in 2020 or 2021 were general obligation or essential purpose revenue bonds. The positive news generally seems to outweigh the negative, but investors should not let their guard down yet. General obligation bonds and essential purpose revenue bonds continue to prove resilient, but other types of revenue bonds remain vulnerable.  Dana Sparkman, CFA, is Senior Vice President/Municipal Analyst in The Baker Group’s Financial Strategies Group. She manages a municipal credit database that covers more than150,000 municipal bonds, providing clients with specific credit metrics essential in assessing municipal credit. Dana earned a bachelor’s degree in finance from the University of Central Oklahoma as well as the Chartered Financial Analyst designation. You can reach Dana at 405-415-7223 or dana@GoBaker.com .

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