Charter Schools Increase New Bonds Most Since 2007: Muni Credit
U.S. charter schools are issuing municipal debt at the fastest pace since 2007 as enrollment grows, national networks expand and the lowest yields in a generation spur construction and refinancing.
The independent public schools operate without many of the rules governing traditional institutions in exchange for more accountability for student achievement. They have sold about $580 million of munis this year through August, the most since $644 million in the same period of 2007, data compiled by Bloomberg show. Issuance of the riskiest debt -- about half the deals are unrated -- has climbed even as charter defaults are set to be the most since 2009.
In May, six months after Atlanta-area schools run by followers of a Turkish imam borrowed $19 million to build a new campus, the organization defaulted. The local district refused to renew its charter. Also in May, a
